Question: Project C has been classified into risk class II by the analyst of a major firm. The risk premium required for projects in this risk

Project C has been classified into risk class II by the analyst of a major firm. The risk premium required for projects in this risk class is 8%. The current risk-free rate measured by the analyst is 10%. If the project has an estimated return of 20%, the analyst would recommend

		a. accepting project C
		b. rejecting project C
		c. reestimating the risk premiums for class II projects
		d. none of the above

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