Solved

The Relevant Risk-Free Rate Is 5%, and the Equity Premium

Question 3

Multiple Choice

The relevant risk-free rate is 5%, and the equity premium has averaged 9% in recent years. Your project has an estimated beta of 1.12. What rate of return should you require on this
Project? Round your answer to the nearest tenth of a percent.


A) 14.6%
B) 5.1%
C) 15.1%
D) 9.5%

Correct Answer:

verifed

Verified

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents