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For a Multi-Product Firm,if a Project's Beta Is Different from That

Question 1

Multiple Choice

For a multi-product firm,if a project's beta is different from that of the overall firm,then the:


A) CAPM can no longer be used.
B) project should be discounted using the overall firm's beta.
C) project should be discounted at a rate commensurate with its own beta.
D) project should be discounted at the market rate.
E) project should be discounted at the T-bill ratE.

Correct Answer:

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