A Project Has a Beta of 0

question 102

Multiple Choice

A project has a beta of 0.97,the risk-free rate is 4.1%,and the market risk premium is 8.1%.What is the project's expected rate of return?

• A) 7.98%
• B) 11.96%
• C) 8.35%
• D) 11.83%

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Definitions:

Homogenous Groups

Groups composed of members who are similar in terms of characteristics, beliefs, or backgrounds.

Perform Better

To achieve a higher level of efficiency, quality, or outcome in a task or competition compared to previous attempts or compared to others.

Power

The ability or capacity to influence or control the behavior of others, the course of events, or the distribution of resources.

Action

The process or act of doing something towards achieving an objective or solving a problem, often involving physical or mental effort.