Question: A project under consideration has an internal rate of return of 16% and a beta of 0.6. The risk-free rate is 6%, and the expected
A project under consideration has an internal rate of return of 16% and a beta of 0.6. The risk-free rate is 6%, and the expected rate of return on the market portfolio is 16%. Calculate the required return = ____ % Should the project be accepted, yes or no? Calculate the required return if its beta is 1.6 Required return = _______ % Should this project be accepted, yes or no?
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