Calculate the project-specific benchmarks for each project

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An all-equity firm is considering the projects shown below. The T-bill rate is 4 percent and the market risk premium is 6 percent.

Project          Expected Return           Beta

A                         9 %                       0.8

B                         19 %                      1.5

C                          13 %                    1.7

D                          17 %                     1.9

Question1 : Calculate the project-specific benchmarks for each project

Reference no: EM132506763

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