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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?
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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