Project A has a beta of 1 . 6 and an expected rate of rate of return

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Question:

Project A has a beta of

1.6

and an expected rate of rate of return of

15 % .

Project B has a beta of

0.9

and an expected rate of return of

12.6 % .

What is the risk

-

free rate? Report answers to four decimal places

Related Book For answer-question

Income Tax Fundamentals 2013

ISBN: 9781285586618

31st Edition

Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill

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Posted Date: Apr 01, 2024 03:29 AM

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Project A has a beta of 1 . 6 and an expected rate of rate of return

Question:

Expert Answer:

To determine the riskfree rate we can use the Capital Asset Pricing Model CAPM equation which relate... View the full answer

Income Tax Fundamentals 2013

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