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The project is all - equity financed, and the company evaluated the risk - free rate of return at 6 . 1 % . The

The project is all-equity financed, and the company evaluated the risk-free rate of return at 6.1%. The expected return on the Market portfolio (FTSE 100 Index) is 7.5%, and the market beta for the Energy Company is 0.92. Explain.

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