Todd takes the market interest rate of 10% as given. Todd's beta is 0.8. This implies that Todd's beta*delta is approx. _____ and that Todd will be indifferent between $1000 in one year and approx. _____ today.
A) 0.727; $727.
B) 0.8; $800.
C) 0.91; $910.
D) 0.762; $762.
Correct Answer:
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