The project’s beta is 1.8. Assuming that rf = 8% and E(rM) = 16%, what is the net present value of the project? What is the highest possible beta estimate for the project before its NPV becomes negative?
The project’s beta is 1.8. Assuming that rf = 8% and E(rM) = 16%, what is the net present value of the project? What is the highest possible beta estimate for the project before its NPV becomes negative?