If a company has a beta of 1 65 and is considering a high risk project outside its normal course of business with a beta of 1 9, what beta should the company use in evaluating the new project The 1 65 or the 1 9 Why ...

When evaluating the risk of a new project its important to adjust the projects beta to reflect its s ...

If a company has a beta of 1.65 and is considering a high-risk project outside its normal

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If a company has a beta of 1.65 and is considering a high-risk project outside its normal course of business with a beta of 1.9, what beta should the company use in evaluating the new project? The 1.65 or the 1.9? Why?

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Financial Management Theory and Practice

ISBN: 978-1305632295

15th edition

Authors: Eugene F. Brigham, Michael C. Ehrhardt

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Posted Date: Apr 02, 2024 06:03 AM

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If a company has a beta of 1.65 and is considering a high-risk project outside its normal

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Financial Management Theory and Practice

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