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Assume the CAPM model holds. You have the following information pertaining to three projects: Project 1: Beta=2.0, Net Present Value using a cost of capital

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Assume the CAPM model holds. You have the following information pertaining to three projects: Project 1: Beta=2.0, Net Present Value using a cost of capital of 20% equals zero. Project 2: Beta = 1.5, Net Present Value using a cost of capital of 10% equals zero. Project 3: Beta = 1.0, Net Present Value using a cost of capital of 6% equals zero. The expected return on a market portfolio is 8% and the riskless rate is 3%. Which projects would be acceptable and which not

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