Ziker Golf Company Evaluated a Project as a Risky Project

question 3

Multiple Choice

Ziker Golf Company evaluated a project as a risky project. Ziker generally evaluates projects that are riskier than average by adjusting its required rate of return by 4 percent. If Ziker expects 12% return on average risk projects, then it should expect a return of _____ for a risky project.

• A) 8%
• B) 12%
• C) 16%
• D) 10%
• E) 48%

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Definitions:

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