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Integrative Risk, return, and CAPM Wolff Enterprises must consider one investment project using the capital asset pricing model (CAPM). Relevant information is presented in the
Integrative Risk, return, and CAPM Wolff Enterprises must consider one investment project using the capital asset pricing model (CAPM). Relevant information is presented in the following table. (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Item Risk-free asset Market portfolio Project Rate of return 4% 9% Beta, b 0.00 1.00 1.04 a. Calculate the required rate of return for the project, given its level of nondiversifiable risk. b. Calculate the risk premium for the project, given its level of nondiverisifiable risk. ... a. The required rate of return for the project is %. (Round to two decimal places.)
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