A project has an assigned 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%

Name: A project has an assigned 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%
Brand: Quizplus
Rating: 4.9 (37 reviews)

Question

Quizplus · Accepted Answer

E(R) = 4.1% + 0.97(8.1%) = 11.96%

A Project Has an Assigned Beta of 0