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For a project with a beta of 1.5, the internal rate of return is 17%. Suppose that Treasury bills offer a return of 4% and
For a project with a beta of 1.5, the internal rate of return is 17%. Suppose that Treasury bills offer a return of 4% and the market risk premium is 10%. Which of the following statements is correct? Multiple Choice Accept the project because it return lies below the security market line. There is not enough information to know whether to accept or reject the project. Accept the prolect because its return lles above the security market line. Reject the project because its return lles below the security market line. Reject the project because its return lies above the security market line
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