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A project under consideration has an internal rate of return of 12% and a beta of 0.7. The risk-free rate is 5% and the expected

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A project under consideration has an internal rate of return of 12% and a beta of 0.7. The risk-free rate is 5% and the expected rate of return on the market portfolio is 10%. a. Should the project be accepted? Yes b. Should the project be accepted if its beta is 1.5? Yes c. Does your answer change? No

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