The beta for General Motors (GM) is 0.5, the risk-free rate is 4%, and
The beta for General Motors (GM) is 0.5, the risk-free rate is 4%, and the market return is 9%. What is GM’s risk-adjusted discount rate?
A) 4%
B) 4.5%
C) 6.5%
D) 9%
ANSWER
C
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