A project under consideration has an internal rate of return of 14% and a beta of 0.6.
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Question:
A project under consideration has an internal rate of return of 14% and a beta of 0.6. The risk-free rate is 9%, and the expected rate of return on the market portfolio is 14%. |
a-1. | Calculate the required return. |
Required return | % |
b-1.Calculate the required return if its beta is 1.6.
Required return%
b-2.Should the project be accepted?
Related Book For
Fundamentals of Corporate Finance
ISBN: 978-0077861629
8th edition
Authors: Richard Brealey, Stewart Myers, Alan Marcus
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