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Passionfruit PLC is an all equity firm. The firm's cost of capital is 5%. The capital market line is currently given by the equation: Ri=

Passionfruit PLC is an all equity firm. The firm's cost of capital is 5%. The capital market line is currently given by the equation: Ri= 2% + Betai *(3%) Assume that the firm has sufficient excess funds. You're offered a project with a beta of 1.4 that has a rate of return of 6%. Should you accept this project? Select one: a. Yes b. No

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