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31 July, 08:54

If a firm applies its overall firm's beta to projects with varying levels of risk, the firm will tend to: Multiple Choice

a. reject the riskiest projects.

b. accept all low-risk projects.

c. become riskier over time.

d. accept only projects of equal risk to its current operations.

e. remain at its current level of overall risk.

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  1. 31 July, 10:52
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    Answer: b. Accept low risk projects.
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