16 An all-equity company is considering investing in the following projects: Project Asset beta Expected return [96] A 0
Posted: Mon Mar 21, 2022 4:35 pm
company is considering investing in the following projects: Project Asset beta Expected return [96] A 0.75 6.38 B 0.92 7.22 с 1.22 7.93 The expected return on the market portfolio is 7.2%, whereas the risk-free rate is 2.5%. Assume the CAPM holds. 1.0p Where do these three projects lie relative to the SML? Below the SML At the SML Above the SML Project A Project B OOO OOO Project
16 An all-equity