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    Exam 10: Project Cash Flows and Risk
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    If the Risk-Free Rate Is 6 Percent, the Return on an Average
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If the Risk-Free Rate Is 6 Percent, the Return on an Average

Question 16

Question 16

Multiple Choice

If the risk-free rate is 6 percent, the return on an average stock is 10 percent, and the beta of this project is 1.50, then the expected return from the project is _____.


A) 12%
B) 24%
C) 4%
D) 19%
E) 23%

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