Suppose that the market return is 13.3% per year and the risk free rate averaged 4%....
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Suppose that the market return is 13.3% per year and the risk free rate averaged 4%. The risk free rate is now 5%. You are considering a project with the same risk as the market. What should its discount rate be? Suppose that the market return is 13.3% per year and the risk free rate averaged 4%. The risk free rate is now 5%. You are considering a project with the same risk as the market. What should its discount rate be?
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