What is the highest project beta

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Reference no: EM131511138

A project is determined to have equal probability of generating $1 million annually or $500,000 annually for four years. The initial outlay is $2 million. The expected return on Treasury bills is 6% and the market risk premium is 8%. What is the highest project Beta that will justify acceptance of the project?

A. 0.0

B. 1.00

C. 1.56

D. 2.31

Reference no: EM131511138

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