Evaluate foreign project in terms of expected rate of return

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1. As a U.S. corporation, assuming your own investors are domestic, can you evaluate foreign projects in terms of their expected rate of return and market beta with respect to the U.S. market?

2. If foreign stocks follow their local CAPM, and U.S. stocks follow a U.S. CAPM, and U.S. and foreign stocks can be bought by both investors, is it likely that these foreign stocks obey a U.S. CAPM?

Reference no: EM131243344

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