Bob's Discount Shoe Source Is Adding a New Line of Shoes

question 102

Multiple Choice

Bob's Discount Shoe Source is adding a new line of shoes to the company portfolio and has the following information: the expected market return is 13%, the risk-free rate is 3%, and the expected return on the new project is 11%. What is the beta of the project?

• A) 0.60
• B) 0.70
• C) 0.80
• D) 0.90

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