Why do projects plotting above below the sml have positive


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?

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Risk Management: Why do projects plotting above below the sml have positive
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