A Project Returns 15% When the Market Returns 10% and 8

question 37

Multiple Choice

A project returns 15% when the market returns 10% and 8% when the market returns 15%. Calculate the project's market beta.

• A)-1.4
• B)-0.7
• C)+0.7
• D)0.0

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Definitions:

Derived Demand

The demand for a product or service that arises from the demand for another product or service it helps to produce.

Catgut

A type of cord made from the natural fibres of an animal's intestines, commonly used in the past for musical instrument strings and surgical sutures.

Innovators

Individuals or companies that introduce new products, services, or methods, often opening up new markets or changing existing ones.