Investment projects that plot above the security market line would be considered to have:
A)A positive NPV.
B)A negative NPV.
C)A zero NPV.
D)an excessively high discount rate.

Question

Quizplus · Accepted Answer

Investment projects that plot above the security market line have a higher expected return than the risk-adjusted required return, indicating that they have a positive NPV.

Investment Projects That Plot Above the Security Market Line Would