Putting the projects beta into the capm gives the project a


A firm has an asset beta of 1 and a company cost of capital of 15%. A new project comes along with a beta of .2 and an expected return (IRR) of 10%. Putting the project's beta into the CAPM gives the project a return of 5% based on project risk. Should the firm accept or reject the project? Explain.

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Finance Basics: Putting the projects beta into the capm gives the project a
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