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Fritz's Corporation is considering an investment that has a Beta of 1.2. The Market's return over the next few years is expected to be 12
Fritz's Corporation is considering an investment that has a Beta of 1.2. The Market's return over the next few years is expected to be 12 percent. Nice, safe Treasury bills are paying 3 percent. According to our statistical estimates, Fritz's believes that the rate of return on the project will be 13 percent. Should the Fritz Corporation invest in this new project?
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