Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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A project under consideration has an internal rate of return of 17% and a beta of 0.5. The risk-free rate is 9% and the expected rate of return on the market portfolio is 17%. 

A. What is the required rate of return on the project?

B. Should the project be accepted? 
C. What is the required rate of return on the project if the beta is 1.50?

D. If projects beta is 1.50, should the project be accepted? 

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