A project under consideration has an internal rate of return of 1496 and a beta of 0.6. The risk-free rate is 99%, and the expected rate of return on the market portfolio is 149%. a-1. Calculate the required return. Required return a-2. Should the project be accepted? Yes No b-1. Calculate the required return if its beta is 1.6. Required return 96 b-2 Should the project be accepted? Yes No
A project under consideration has an internal rate of return of 1496 and a beta of 0.6. The risk-free rate is 99%, and the expected rate of return on the market portfolio is 149%. a-1. Calculate the required return. Required return a-2. Should the project be accepted? Yes No b-1. Calculate the required return if its beta is 1.6. Required return 96 b-2 Should the project be accepted? Yes No
Chapter8: Analysis Of Risk And Return
Section: Chapter Questions
Problem 2P
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