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Redesign Corp

Question 51

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Redesign Corp.is considering a new strategy that would increase its expected return from 12% to 13.9%,but would also increase its beta from 1.2 to 1.8.If the risk-free rate is 5% and the return on the market is expected to be 10%,should Redesign change its strategy?

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No.Currently the company's required retu...

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