Integrative Risk Return And Capm Wolff Enterprises Must Consider One Investment 2457712

Integrative?Risk, ?return, and CAPM Wolff Enterprises must consider one investment project using the capital asset pricing model? (CAPM). Relevant information is presented in the following table.

Item

Rate of return

?Beta, b

?Risk-free asset

9?%

0.00

Market portfolio

15?%

1.00

Project

1.13

a. Calculate the required rate of return for the? project, given its level of nondiversifiable risk.

b. Calculate the risk premium for the? project, given its level of nondiverisifiable risk.

a. The required rate of return for the project is _____%. ?(Round to two decimal? places.)

b. The risk premium for the project is ______%. ?(Round to two decimal? places.)

Prof. Angela

4.6/5

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