Risky Prospecting Co. is considering a new excavation project. The company believes. that the project has...
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Risky Prospecting Co. is considering a new excavation project. The company believes. that the project has a beta of 3.65. The T-bill rate is 5.2%, and the S&P 500 return is 11.1%. What is the appropriate return on the new project? Risky Prospecting Co. is considering a new excavation project. The company believes. that the project has a beta of 3.65. The T-bill rate is 5.2%, and the S&P 500 return is 11.1%. What is the appropriate return on the new project?
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Answer rating: 100% (QA)
We can estimate the appropriate return on the new project using the Capital Asset Pricing Model CAPM ... View the full answer
Related Book For
Statistics For Business And Economics
ISBN: 9780132745659
8th Edition
Authors: Paul Newbold, William Carlson, Betty Thorne
Posted Date:
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