What is the project expected rate of return

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A portfolio has an assigned beta of 1.05, the risk-free rate is 2.5%, and the market rate of return is 8.0%. What is the project's expected rate of return? Analyse whether the investor should invest in such portfolio? If investor is following Black Scholes Model and interesting in investing in Option as an alternative of this portfolio, what will be the factors which will impact his decision?

Reference no: EM133115670

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