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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 1.1 and an expected return of 10%, the other has a correlation with the market returns of 0.3, expected returns of 8%, and a standard deviation of 12%. The expected market returns are 13% with a variance of 81% and the risk free rate is 6%. Assume the firm is all equity. Are either of the projects positive NPV? How can you tell?

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