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Assume that the CAPM holds and that you receive all of your financing in the form of equity. You expect an investment project to return
Assume that the CAPM holds and that you receive all of your financing in the form of equity. You expect an investment project to return 13%. The projects returns have a beta of 1.2, the market risk premium is 6%, and you expect the market to return 10%. Is the project positive NPV?
Group of answer choices
Yes
No, NPV < 0
NPV=0
None of the above
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