Multiple Choice
A project has an expected risky cash flow of $200 in year 1. The risk-free rate is 6 percent, the expected market rate of return is 16 percent, and the project's beta is 1.50. Calculate the certainty equivalent cash flow for year 1, CEQ1.
A) $175.21
B) $165.29
C) $228.30
D) $182.76
Correct Answer:
Verified
Correct Answer:
Verified
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