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If a firm adopts a large proportion of above-average-risk investment projects that are not offset by below-average-risk investment projects ____ Its cost of capital will

If a firm adopts a large proportion of above-average-risk investment projects that are not offset by below-average-risk investment projects ____ Its cost of capital will rise The average risk premium for the firm will decline The risk-free rate will increase as more risk is added None of the above

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