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%.

---

Definitions:

Academic Skills

Abilities and aptitudes directly related to learning and performance in educational settings, such as reading, writing, and arithmetic.

Constructive Play

Play involving use of objects or materials to make something.

Blocks

In a generic sense, refers to physical cubes or rectangular solids used variously in toys, construction, and programming contexts.

Coloring

The act or practice of adding colors to various surfaces or objects, often used as a form of art or creativity enhancement.