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The Daily Bugle has an average funding cost of 8%and the risk-free rate is 4%. Applying classic economic principles, if the Daily Bugle develops a
The Daily Bugle has an average funding cost of 8%and the risk-free rate is 4%. Applying classic economic principles, if the Daily Bugle develops a risk-free project that returns 6%, should it undertake the project? A)No, because the project's return is less than the average funding cost B)Yes, because all risk -free projects should be accepted C)Yes because the riskfree project's return is greater than the risk-free rate D) Impossible to say without knowing The Daily Bugle's beta
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