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Use the information for the question(s) below.
Suppose that in the coming year,you expect Exxon-Mobil stock to have a volatility of 42% and a beta of 0.9,and Merck's stock to have a volatility of 24% and a beta of 1.1.The risk-free interest rate is 4% and the market's expected return is 12%.
-The cost of capital for a project with the same beta as Exxon Mobil's stock is closest to:
Technology
Business application of knowledge based on scientific discoveries, inventions, and innovations.
U.S. Productivity
measures the efficiency of production in the United States, typically gauged by the output of goods and services per unit of labor input.
Gross Domestic Product
The total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period.
Nation's Total Productivity
A measure of the efficiency of production within a country, accounting for the output of goods and services relative to input resources.
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