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You have forecast the cash flows on a project with a beta of 0.9 and calculated that its internal rate of return is 15 percent

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You have forecast the cash flows on a project with a beta of 0.9 and calculated that its internal rate of return is 15 percent Suppose that Treasury bills offer a return of 5 percent and the expected market risk premium is 8 percent. Which of the following statements is correct? Multiple Choice Accept the project because its return lies below the security market line There is not enough information to know whether to accept or reject the project Reject the project because its return lies below the security market line Reject the project because its return lies above the security market line Accept the project because its return lies above the security market line

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