Your Project Has a Beta of 1

question 13

Multiple Choice

Your project has a beta of 1.8. The risk-free rate is 5.3%, and the expected return on the market is 12%. What minimum rate of return should you require on this project? Round your answer
To the nearest tenth of a percent.

• A)15.4%
• B)16.9%
• C)12.1%
• D)none of the above

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Definitions:

High-Fiber Cereals

Cereal products that are rich in dietary fiber, beneficial for digestive health and helpful in maintaining a healthy weight.

Cigarette Smoking

The process of breathing in and out the smoke generated from burning tobacco in cigarettes, which is detrimental to one's health.

Cardiovascular Death

Death resulting from diseases related to the heart and blood vessels, such as heart attack or stroke.

Behavioral Risk Factor

Behaviors that increase the likelihood of developing medical problems or diseases, such as smoking or a sedentary lifestyle.