Considered when making capital budgeting decision

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Reference no: EM131949860

1. What impact would the following changes have on the security market line and therefore on the required return for a given level of risk? (a) an increase in inflationary expectations, (b0 Investors become less risk-averse.

2. Explain two ways the Federal Reserve could raise the Federal Funds Rate without changing the Money supply?

3. Explain what capital budgeting is and what must be considered when making a capital budgeting decision.

Reference no: EM131949860

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