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Suppose that Treasury bill rate is 6% and the market rate is 12%. a. Draw the security market line. b. Suppose that Project A has

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Suppose that Treasury bill rate is 6% and the market rate is 12%. a. Draw the security market line. b. Suppose that Project A has the beta of 0.75, and Project B has the beta of 1.75. What are the project costs of capital for new wentures A and B ? c. If the internal rate of return is 10% for both, Project A and Project B, which project will you adopt? Why

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