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Nob-Orrow Inc. is considering an investment in a project that is similar in risk to its existing projects. The firm makes no use of debt
Nob-Orrow Inc. is considering an investment in a project that is similar in risk to its existing projects. The firm makes no use of debt and is entirely financed by common stock with a beta of 1.3 Using he capital asset pricing model, the expected return on the market portfolio is 10 percent and the risk-free rate is 3 percent. The required rate of return on this project is:
16.8%
9%
15.6%
12.1%
none of the above
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