he Treasury bill rate is 6% and the market risk premium is 7%. Which of the capital investments shown above have positive (non-zero) NPV's? Project Beta Internal Rate of Return, % P 1.00 14 Q 0.00 10 R 2.00 20 S 0.40 11 T 1.70 22
he Treasury bill rate is 6% and the market risk premium is 7%. Which of the capital investments shown above have positive (non-zero) NPV's? Project Beta Internal Rate of Return, % P 1.00 14 Q 0.00 10 R 2.00 20 S 0.40 11 T 1.70 22
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
Problem 1PS
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The Treasury bill rate is 6% and the market risk premium is 7%.
Which of the capital investments shown above have positive (non-zero) NPV's?
Project | Beta | ||||
P | 1.00 | 14 | |||
Q | 0.00 | 10 | |||
R | 2.00 | 20 | |||
S | 0.40 | 11 | |||
T | 1.70 | 22 | |||
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