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You are considering a project that has a correlation with the market returns of 0.5, expected returns of 11%, and a standard deviation of 12%.
You are considering a project that has a correlation with the market returns of 0.5, expected returns of 11%, and a standard deviation of 12%. The expected market returns are 13% with a standard deviation of 7% and the risk free rate is 3%. If your firm is all equity financed should you accept the project? Doesn't matter No Can't tell Yes
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