The risk-free rate is 4.5 %. The expected rate of return on the stock market...

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Finance

The risk-free rate is 4.5 %. The expected rate of return on the stock market is 6 %. What is the appropriate cost of capital for a project that has a beta of 2.22?

Select one:

a. The cost of capital is: 9.83

b. The cost of capital is: 6.83

c. The cost of capital is: 10.83

d. The cost of capital is: 7.83

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