How can financial managers use sml to make accept decisions

Reference no: EM131477734

Question: 1. How can financial managers use the SML to make accept-reject decisions for capital investments?

2. Why do projects plotting above (below) the SML have positive (negative) NPVs?

3. What are several limitations of using the CAPM to calculate a project's required rate of return?

Reference no: EM131477734

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