project A has beta of .69 and an IRR of 9.27. project B has 1.13 beta...
Homework Answers
risk adjusted cost of capital:
A=3.6%+0.69*(10.8%-3.6%)=8.568%
B=3.6%+1.13*(10.8%-3.6%)=11.736%
Accept Project A and reject project B
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project A has beta of .69 and an IRR of 9.27. project B has 1.13
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