Question
The relevant risk-free rate is 5%, and the equity premium has averaged 9% in recent years. Your project has an estimated beta of 1.12. What
The relevant risk-free rate is 5%, and the equity premium has averaged 9% in recent years. Your project has an estimated beta of 1.12. What rate of return should you require on this project? Round your answer to the nearest tenth of a percent.
(A) 5.1%
(B) 9.5%
(C) 15.1%
(D) 14.6%
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Investments
Authors: Zvi Bodie, Alex Kane, Alan J. Marcus
9th Edition
73530700, 978-0073530703
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