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Business, 23.10.2019 04:00 IDONTHAVEABRAIN

Assume that the risk-free rate of interest is 6% and the expected rate of return on the market is 16%. i am buying a firm with an expected perpetual cash flow of $1,000 but am unsure of its risk. if i think the beta of the firm is .5, when in fact the beta is really 1, how much more will i offer for the firm than it is truly worth?

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Assume that the risk-free rate of interest is 6% and the expected rate of return on the market is 16...
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