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Market risk is the same as the market portfolio

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What are the project costs of capital for new ventures with betas of 0.75 and 1.55? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)

b. Which of the capital investments shown above have positive (non-zero) NPV's? (You may select more than one answer.)

· Project P

· Project Q

· Project S

· Project T

· Project R

17. You are considering the purchase of real estate that will provide perpetual income that should average $72,000 per year. How much will you pay for the property if you believe its market risk is the same as the market portfolio's? The T-bill rate is 5%, and the expected market return is 8.0%.

Reference no: EM132525498

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