1. If you were in charge of appointing Project Manager for one of the worlds most challenging projects what well known person ( someone dealing with sports) would you select to lead it and why? Market capitalization for X Corporation is $10 billion.
2. Estimated beta for its new project is 1.25
The treasury bill rate is 5%
The project's IRR is 14%
The expected rate of return on the S&P 500 is 13%.
Determine the expected return on project by using CAPM?
(Assume no taxes)
A) 13%
B) 14.6%
C) 15%
D) 16.25%
E) 18%
F) 21.25%