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Your Project Has a Beta of 1

Question 12

Multiple Choice

Your project has a beta of 1.8. The risk-free rate is 5.3%, and the expected return on the market is 12%. What minimum rate of return should you require on this project? Round your answer
To the nearest tenth of a percent.


A) 15.4%
B) 16.9%
C) 12.1%
D) none of the above

Correct Answer:

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