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If the Risk-Free Rate Is 6 Percent, the Return on an Average

Question 30

Multiple Choice

If the risk-free rate is 6 percent, the return on an average stock is 10 percent, and the beta of a capital budgeting project is 1.50, the project's required rate of return from the project is _____. 


A) 12%
B) 24%
C) 4%
D) 19%
E) 21%

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