Which of these projects is likely to have the higher asset beta, other things equal? Why? a.

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Which of these projects is likely to have the higher asset beta, other things equal? Why?

a. The sales force for project A is paid a fixed annual salary. Project B’s sales force is paid by commissions only.

b. Project C is a first-class-only airline. Project D is a well-established line of breakfast cereals.

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