Calculate the Required Return for a Project Undertaken in Italy

question 83

Multiple Choice

Calculate the required return for a project undertaken in Italy given the following information.The appropriate risk free rate is 5%,the project has a calculated beta of 1.35 relative to the Italian stock market,and the market risk premium for the Italian stock market is 7%.

• A) 4.45%
• B) 5.0%
• C) 14.45%
• D) 9.45%