Everest Technologies Inc. has a project with an assigned beta of 1.4. The risk-free rate is 4.2%, and the market rate of return is 10.8%. What is the project's expected rate of return?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter11: Capital Budgeting And Risk
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Everest Technologies Inc. has a project with an assigned beta of 1.4.
The risk-free rate is 4.2%, and the market rate of return is 10.8%.
What is the project's expected rate of return?
Transcribed Image Text:Everest Technologies Inc. has a project with an assigned beta of 1.4. The risk-free rate is 4.2%, and the market rate of return is 10.8%. What is the project's expected rate of return?
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