Question: A project is determined to have equal probability of generating $3 million annually or $1 million annually for six years. The initial investment is $8

A project is determined to have equal probability of generating $3 million annually or $1 million annually for six years. The initial investment is $8 million. The expected return on Treasury bills is 2 percent and the market return is 10 percent. What is the highest project beta that will justify acceptance of the project?

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