An asset's beta can be used to compute its discount rate for an NPV calculation because the discount rate is equal to
A) rf + b(rm + rf).
B) rf - b(rm + rf).
C) rf - b(rm - rf).
D) rf + b(rm - rf).
E) beta itself.
D
Economics
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Suppose the demand for pork is given by the equation
Q = p-0.5pc0.2 where pc is the price of chicken. Compute the cross-price elasticity of demand for pork
Economics
The nominal rate of interest is
A) the interest rate observed in today's market. B) the interest rate observed in the market minus the inflation premium. C) not influenced by inflation. D) a value that depends upon the stock market.
Economics