18. SARAC0 wants to specify their MARR. The real return they want is 4%. The expected inflationrate is 3%. Their business is considered to be of low risk and the required risk premium of 10%.What would be their MARR?(a) 7%(b)13%a 14%17%

given information real return = 4% expected inflation rate = 3% required risk premium = 10%

rate is 3%. Their business is considered to be of low risk and the required risk premium of 10%. What would be their MARR? 13. SARAC0 wants to specify their MARR. The real return they want is 4%. The expected inflation (a) 7% (b) 13% 14% d) 17%

rate is 3%. Their business is considered to be of low risk and the required risk premium of 10%. What would be their MARR? 13. SARAC0 wants to specify their MARR. The real return they want is 4%. The expected inflation (a) 7% (b) 13% 14% d) 17%

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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Question

18. SARAC0 wants to specify their MARR. The real return they want is 4%. The expected inflation
rate is 3%. Their business is considered to be of low risk and the required risk premium of 10%.
What would be their MARR?
(a) 7%
(b)
13%
a 14%
17%

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