Question: When evaluating a project, the chance of default is captured by (A) using the CAPM expected rate of return as the discount rate (B) using

When evaluating a project, the chance of default is captured by

(A) using the CAPM expected rate of return as the discount rate

(B) using the expected return on the market as the discount rate

(C) calculating the expected cash flows of the project

(D) discounting the expected cash flows of the project at the equity premium

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