Question
The beta of a particular project is estimated to be 0.5. The risk-free rate and the market risk premium over the lifetime of the project
The beta of a particular project is estimated to be 0.5. The risk-free rate and the market risk premium over the lifetime of the project are 6% and 4%, respectively.
a) Calculate the required rate of return for the project.
b) What type of project might that be?
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Fundamentals of Investments, Valuation and Management
Authors: Bradford Jordan, Thomas Miller, Steve Dolvin
8th edition
1259720697, 1259720691, 1260109437, 9781260109436, 978-1259720697
