12Mar/111
Project Risk Required Return
Kj = Rf + (Ko - Rf)
OR
(Kj-Rf)=(Ko-Rf)
Kj= return for the job
Rf= risk free rate
Ko= cost of capital for entire organization
Kj = Rf + (Ko - Rf)
OR
(Kj-Rf)=(Ko-Rf)
Kj= return for the job
Rf= risk free rate
Ko= cost of capital for entire organization