Fastchip is a small technology company with a beta of 1.5 and a market capitalization of $200

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Fastchip is a small technology company with a beta of 1.5 and a market capitalization of $200 million. Currently, long-term government securities are yielding 5.0 percent, intermediate governments are yielding 4.0 percent, and T-bills are yielding 3.3 percent. Calculate the required rate of return using all three risk-free rates. Choose which one would be the most aggressive and which would be the most conservative to use in valuing cash flows. Which  would you prefer to use, and why? Ke would you prefer to use, and why?
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Fundamentals of Investment Management

ISBN: 978-0078034626

10th edition

Authors: Geoffrey Hirt, Stanley Block

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