An asset’s beta can be used to compute its discount rate for an NPV ca
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.
ANSWER
D
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