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

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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