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problem: Assume the market risk premium is 6% & the risk free interest rate is 3%. 

[A] Compute the cost of capital of investing in a project with a beta of 0.8.

[B] If the expected cash flow from this security in one year is 60 dollar with nothing afterwards, find out the security's market price?

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M919426

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