15.6 University Health System has three divisions: Real Estate, with an 8 percent cost of capital; Health Services, with a 10 percent cost of capital, and Managed Care, with a 12 percent cost of capital. The points risk adjustment procedures call for adding 3 percentage to adjust for high risk and subtracting percentage points for low risk. Construct a diagram such as the one in Exhibit 15.8 that illustrates the range of project costs of capital for the system