If a risky investment has a beta of zero, what should its cost of capital be according

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If a risky investment has a beta of zero, what should its cost of capital be according to the CAPM? How can you justify this?

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Corporate Finance

ISBN: 9781292446318

6th Global Edition

Authors: Jonathan Berk, Peter DeMarzo

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Question Posted: Apr 04, 2024 04:00 AM

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If a risky investment has a beta of zero, what should its cost of capital be according

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According to the Capital Asset Pricing Model CAPM the cost of equity capital rtexte for a risky inve...View the full answer

Corporate Finance

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