Question: a project is determined to have equal probability of generating $1 million annually or $500,000 annually for four years. the initial outlay is 2 million.

a project is determined to have equal probability of generating $1 million annually or $500,000 annually for four years. the initial outlay is 2 million. The expected return on treasury bills is 6% and the market risk premium is 10%. what is the highest project beta that will justify acceptance of the project?

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