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a. b. C. d. Required rate of return Accept the project Required rate of return Accept the project % % Portfolio Treasury bills Treasury
a. b. C. d. Required rate of return Accept the project Required rate of return Accept the project % % Portfolio Treasury bills Treasury bonds Common stocks Average Annual Rate of Return (%) 3.8 5.3 11.5 Average Premium (Extra return versus Treasury bills) (8) 1.5 7.7
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