Question: Your are considering the following three projects: Project Beta 2.0 1.0 1.5 Expected.(Estimated) Return 19% 12% 18% B Currently the 3-month Treasury Bill rate is
Your are considering the following three projects: Project Beta 2.0 1.0 1.5 Expected.(Estimated) Return 19% 12% 18% B Currently the 3-month Treasury Bill rate is 6%, and the market risk premium is 7%. Given these information, which project(s) should you accept? (Hint: use the CAPM to estimate minimum required rates of return) Project O All three projects O Projects A and B O Project B Project A
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