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Suppose the current T-bill rate is 2.75%, and our forecast for the market excess return is 5.5%. We believe the beta of our company's stock
Suppose the current T-bill rate is 2.75%, and our forecast for the market excess return is 5.5%. We believe the beta of our company's stock is 1.20. if we were to advise this company as to their " hurdle rate " or discount rate for a project similar to the risk of the company. The required or return for an investment with the same risk as our company's equity would be?
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