Question
The risk-free rate in Australia is currently 2.1 percent. Griffith Ltd. is considering a project that has a beta of 1.3. The cost of equity
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The risk-free rate in Australia is currently 2.1 percent. Griffith Ltd. is considering a project that has a beta of 1.3. The cost of equity capital is 7.82 percent. What should be the excess market return using the idea of capital asset pricing model (CAPM).
12.27 percent
6.50 percent
4.40 percent
9.54 percent.
The risk-free rate in Australia is currently 2.1 percent. Griffith Ltd. is considering a project that has a beta of 1.3. The cost of equity capital is 7.82 percent. What should be the excess market return using the idea of capital asset pricing model (CAPM).
| 12.27 percent | ||
| 6.50 percent | ||
| 4.40 percent | ||
| 9.54 percent. |
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Fundamentals of Corporate Finance
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
11th edition
77861701, 978-0077861704
