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You have two projects. One has a Beta of 1 . 1 and an expected return of 1 0 % , the other has a
You have two projects. One has a Beta of and an expected return of the other has a correlation with the market returns of expected returns of and a standard deviation of The expected market returns are with a variance of and the risk free rate is Assume the firm is all equity. Are either of the projects positive NPV How can you tell?
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