The Minimum Acceptable Expected Rate of Return on a Project

question 117

Multiple Choice

The minimum acceptable expected rate of return on a project of a specific risk is the:

• A) project cost of capital.
• B) company cost of capital.
• C) risk-free rate of return.
• D)project beta times the market risk premium.

---

Definitions:

Nonsmokers

Individuals who do not engage in the act of smoking tobacco or have never smoked tobacco.

Incidence

The occurrence of new cases of a disease or condition within a specified time period in a defined population, highlighting the risk of contracting the disease.

Disease X

An unnamed pathogen designated by the World Health Organization as potentially causing a future epidemic.

Smokers

Individuals who regularly inhale tobacco smoke, particularly from cigarettes.