Redesign Corp is considering a new strategy that would increase its expected return from 12% to 13.9%,
Fantastic news! We've Found the answer you've been seeking!
Question:
Redesign Corp is considering a new strategy that would increase its expected return from 12% to 13.9%, but would also increase its beta from 1.2 to 1.8.If the risk free rate is 5% and the return on the market is expected to be 10%, should Redesign change its strategy?
Posted Date: