Redesign Corp is considering a new strategy that would increase its expected return from 12% to 13.9%, but

would also increase its beta from 1.2 to 1.8.

If the risk-free rate is 5% and the return on the market is expected to
be 10%, should Redesign change its strategy?

No. Currently the company's required return is 11% and the company is earning 12%. After the changes, the
company's required return would increase to 14%, but its expected return would increase to only 13.9%. Thus, the
increased return is not sufficient to justify the increased risk.

Business

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When Gerard and his team seek to evaluate blogs according to three dimensions — relevance, sentiment, and authority — they are focused on characterizing the ________ of word of mouth

A) speed B) source C) scale D) share E) space

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One provision of the Dodd-Frank Act was creation of the Financial Stability Oversight Council

This council is charged with identifying nonbank financial companies that could increase the risk of collapse of the entire financial system. This risk is called A) market risk. B) systemic risk. C) diversifiable risk. D) enterprise risk.

Business