Question: Where will the following projects's IRRs plot in relation to the security market line (SML) if the risk-free rate estimate is 6% and the market
Where will the following projects's IRRs plot in relation to the security market line (SML) if the risk-free rate estimate is 6% and the market risk premium is 9%? Project Beta IRR 2.0125% B 1.6 22% 1.1 15% 0.8 11% All project IRRs plot below the SML The IRR of Project A plots above the SML; The IRR of Projects B, C, and D plot below the SML The IRR of Projects A and B plot above the SML: The IRRs of Projects C and D plot below the SML The IRR of Projects A, B, and C plot above the SML: The IRR of Project D plots below the SML
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