Author Question: Rosenberg Inc. is considering a capital budgeting project that has an expected return of 18% and a ... (Read 21 times)

curls713 · **on:** Aug 7, 2023

Question 1

Rodriguez Roofing’s stock has a beta of 1.45, its required return is 12.8%, and the risk-free rate is 5.2%. What is the required rate of return on the stock market? (Hint: First find the market risk premium.)

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10.10%

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10.44%

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10.75%

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10.90%

Question 2

Rosenberg Inc. is considering a capital budgeting project that has an expected return of 18% and a standard deviation of 30%. What is the project’s coefficient of variation?

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1.52

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1.67

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1.80

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1.95

khudija · **Reply #1 on:** Aug 7, 2023

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