Question: . The risk - free rate is 2 % and the expected return on the market portfolio is 1 0 % . A firm considers

. The risk-free rate is 2% and the expected return on the market portfolio is 10%. A firm considers a project with an estimated beta of 1.3. What is the required rate of return on the project? If the IRR of the project is 13%, what is the project alpha?

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