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 return than the risk-free rate and the level of risk associated with the investment. Therefore, they would have a positive NPV.

Investment Projects That Plot Above the Security Market Line Would