Draw the security market line when the Treasury bill rate is 4% and the market risk premium is 7%.
a).- What are the project costs of capital for new ventures with betas of .75 and 1.75?
b).- Wich of the following capital investments have positive NPVs? (L03)
Project Beta Internal Rate of Return, %
P 1.0 14
Q 0 6
R 2.0 18
S 0.4 7
T 1.6 20