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Which of the following statements most accurate? When evaluating capital projects using market risk methods, the discount rate used should be the rate of return
Which of the following statements most accurate? When evaluating capital projects using market risk methods, the discount rate used should be the rate of return required on the project by a diversified investor. Total risk, as measured by the dispersion of NPV, is an appropriate risk measure for a diversified corporation. In a capital asset pricing model, a project's beta is usually used as a measure of nonsystematic risk
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