Beta of a project. Magellan is adding a project to the company portfolio and has the following information: the expecte...

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Beta of a project. Magellan is adding a project to the company portfolio and has the following information: the expected mark

business finance

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Answer 1

Answer #1

Expected return = risk free rate + beta * market risk premium

=>

14.2% = 6.7% + beta * (14.6% - 6.7%)

=>

beta = 0.949

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Answer 2

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