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You Are Trying to Determine the Appropriate Risk-Adjusted Rate,in U

Question 76

Multiple Choice

You are trying to determine the appropriate risk-adjusted rate,in U.S.dollars for a project in Britain.You know that the correct risk-adjusted discount rate in pounds is 15% and the risk-free rate in pounds is 9%.If the risk-free rate in dollars is 5%,then what is the correct risk-adjusted discount rate in dollars? Round to the nearest .01%


A) 10.80%
B) 5.50%
C) 0.48%
D) none of the above

Correct Answer:

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