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Question 1: Suppose that in the past Standard and Poor's Index had returned 10.5% per year and the riskfree averaged 2%. The risk-free rate is

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Question 1: Suppose that in the past Standard and Poor's Index had returned 10.5% per year and the riskfree averaged 2%. The risk-free rate is now 3%. You are considering a project with the same risk as the S\&P. What should its discount rate be

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