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

---

Definitions:

Profit

The financial gain achieved when the revenue gained from business activities exceeds the expenses, costs, and taxes needed to sustain the activity.

Economic Profit

The disparity between total income and total outlays, considering both manifest and concealed costs.

(P - ATC)q

The formula representing profit in economic terms, where P stands for price, ATC for average total cost, and q for quantity produced or sold.

Total Revenue

The total receipts from sales of a firm's goods or services.