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.)

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter11: Capital Budgeting And Risk

Section: Chapter Questions

Problem 6P

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