In evaluating the required rate of return for equity financing of a ca

In evaluating the required rate of return for equity financing of a capital project, the Beta value is

A) the expected rate of growth in a firm’s profits.
B) the expected future value of a firm’s stock.
C) the volatility in the rate of return on a firm’s stock compared with the volatility in the rate of return on a market portfolio of stocks.
D) None of the above

ANSWER

C