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10. Suppose that twn allequity mmpanies, A and B , are mnsidaring th same projact 1whiph has the same. risk and [he sama cash ows.
10. Suppose that twn allequity mmpanies, A and B , are mnsidaring th same projact 1whiph has the same. risk and [he sama cash ows. The. pmjcct has the same: averall risk as B's ppm-minus. The projnct has cunvpntipnal cash ows and an [RR pf 14%. Firm A has a beta 131' 1.4, whii-z rm E has a beta of 1.1. If The risk-franc ram is 5.25% and the; market risk premium is "Fi, which firms] shpuld take din: pmjcct? A. A only E. B only C. A and B D. Neiwr A 01' B E. Cannon! he: datermined with infprmatiun givsn
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