Question: When using CAPM to determine a benchmark return against which to compare a project?s IRR, you should A) use the yield on a one-year Treasury
When using CAPM to determine a benchmark return against which to compare a project?s IRR, you should
| A) use the yield on a one-year Treasury security as your risk-free rate. | ||
| B) use the yield on a ten-year Treasury security as your risk-free rate. | ||
| C) use the yield on a Treasury security that most closely matches the duration of your project as your risk-free rate.
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| D) use the yield on a three-month Treasury security as your risk-free rate. |
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