In case of risky projects the required rate of return would generally be-

Related MCQs

• If risk free rate of return is 8%, Return on market portfolio is 12%, beta = 1.5, then the expected rate of return according to CAPM is equal to
• In a single projects situation, results of internal rate of return and net present value lead to
• When the required rate of return is less than the coupon rate the premium on the bond-
• In mutually exclusive projects, projects which are selected for comparison must have
• Two mutually exclusive investment proposals have "scale differences" (i.e., the cost of the projects differ). Ranking these projects on the basis of IRR, NPV, and PI methods give contradictory results.
• The discount rate at which two projects have identical is referred to as Fisher's rate of intersection.
• ----- is the rate of return that the company must earn on the net funds raised, in order to satisfy the equity shareholders’ demand for return
• If the Real rate of return is 10% and Inflation s Money Discount Rate is:
• In case of divisible projects, which of the following can be used to attain maximum NPV?
• In case of the indivisible projects, which of the following may not give the optimum result?