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Where will the following projects plot in relation to the security market line if the risk-free rate is 6% and the market risk premium is


Where will the following projects plot in relation to the security market line if the risk-free rate is 6% and the market risk premium is 9%? Which projects should be undertaken

Project

Beta

IRR

A

2.0

25%

B

1.6

22%

C

1.1

15%

D

0.8

11%

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