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When using CAPM to determine a benchmark return against which to compare a project?s IRR, you should A) use the yield on a one-year Treasury
When using CAPM to determine a benchmark return against which to compare a project?s IRR, you should
A) use the yield on a one-year Treasury security as your risk-free rate. | ||
B) use the yield on a ten-year Treasury security as your risk-free rate. | ||
C) use the yield on a Treasury security that most closely matches the duration of your project as your risk-free rate.
| ||
D) use the yield on a three-month Treasury security as your risk-free rate. |
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