A Project Has an Asset Beta of 0

question 5

Multiple Choice

A project has an asset beta of 0.70. The expected return on the market is 18%, and the relevant risk-free rate is 7%. The project's required rate of return is

• A)14.7%.
• B)10.5%.
• C)24.5%.
• D)19.6%.

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Definitions:

Inflation Rate

The percentage increase in the price level of goods and services in an economy over a period of time, indicating how fast prices are rising.