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Question 3 (1 point) Saved The risk-free rate is 1%. The market risk premium is 5%. Your CAPM beta is 1.2. You can invest either
Question 3 (1 point) Saved The risk-free rate is 1%. The market risk premium is 5%. Your CAPM beta is 1.2. You can invest either in project 1 or in project 2, but not both. Which one do you choose? Time 0 1 2 3 5 Proj 1 (100) $ 10 $ 20 $ 30 4 $ 40 $ 20 $ $ $ (70) 50 Proj 2 $ 20 $ 20 $ 20 $ 20 Project 1 O Project 2 Question 4 (1 point) Follow up from Q3. What is the minimum value of beta that would lead you to choose project 2? (Round to 3 decimal places) Your
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