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Please show work, cheers :) QUESTION 3: An all-equity firm is considering the following projects: Project Beta Expected Return w .75 8.9% IX .90 10.8

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Please show work, cheers :)

QUESTION 3: An all-equity firm is considering the following projects: Project Beta Expected Return w .75 8.9% IX .90 10.8 Y 1.15 ||12.8 Z 1.45 ||13.9 The T-bill rate is 4 percent, and the expected return on the market is 11 percent. a. Which projects have a higher expected return than the firm's 11 percent cost of capital? b. Using the CAPM, estimate the required return for each project. Which projects should be accepted

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