Where Will the Following Projects Plot in Relation to the Security

question 107

Essay

Where will the following projects plot in relation to the security market line if the risk-free rate is 6% and the market risk premium is 9%? Which projects should be undertaken?
Project Beta IRR
A.2.0 25%
B.1.6 22%
C.1.1 15%
D.0.8 11%

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