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The firm uses the capital asset pricing model for project

You are an analyst following a large "value" firm. The beta of the firm's stock is 1. The firm uses the capital asset pricing model for project valuation: for typical projects the firm uses a cost of equity capital equal to the market's estimated expected return. Is this cost of equity capital being used too high or too low?

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Finance Basics: The firm uses the capital asset pricing model for project

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