Beta of a project. Vespucci is adding a project to the company portfolio and has the following information: the expected market return is 12.3%, the risk-free rate is 4.6%, and the expected return on the new project is 15.4%. What is the project's beta? What is the project's beta? (Round to three decimal places.)
Beta of a project. Vespucci is adding a project to the company portfolio and has the following information: the expected market return is 12.3%, the risk-free rate is 4.6%, and the expected return on the new project is 15.4%. What is the project's beta? What is the project's beta? (Round to three decimal places.)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Chapter 11, Question 3
![Beta of a project. Vespucci is adding a project to the company portfolio and has the following information: the expected market return is 12.3%, the risk-free rate is
4.6%, and the expected return on the new project is 15.4%. What is the project's beta?
What is the project's beta?
(Round to three decimal places.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8a986b02-ba6c-4ef1-b256-a9c9c22af021%2Fde8f20f5-a70b-4ef3-a226-d3e4fc887a1c%2Fie8rpgb_processed.png&w=3840&q=75)
Transcribed Image Text:Beta of a project. Vespucci is adding a project to the company portfolio and has the following information: the expected market return is 12.3%, the risk-free rate is
4.6%, and the expected return on the new project is 15.4%. What is the project's beta?
What is the project's beta?
(Round to three decimal places.)
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