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If a company has a beta of 1.65 and is considering a high-risk project outside its normal course of business with a beta of 1.9,
- If a company has a beta of 1.65 and is considering a high-risk project outside its normal course of business with a beta of 1.9, what beta should the company use in evaluating the new project? The 1.65 or the 1.9? Why?
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When evaluating the risk of a new project its important to adjust the projects beta to reflect its s...
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Financial Management Theory and Practice
Authors: Eugene F. Brigham, Michael C. Ehrhardt
15th edition
130563229X, 978-1305632301, 1305632303, 978-0357685877, 978-1305886902, 1305886909, 978-1305632295
