Advanced Questions

1:

Expected Return on the market is 16% and Risk free rate is 6%. Which of the following projects be accepted?

A.

β =0.50, Return = 11.5%

B.

β = 1.25, Return = 18.0%

C.

β = 1, Return = 15.5%

D.

β = 2, return = 25.0%

 

Answer : A

Explanation :

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Option: A

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