Financial Risk Manager Part 2
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In the context of financial performance evaluation, particularly focusing on the ARAROC (adjusted risk-adjusted return on capital) metric, the company should:
A
Reject the project because the ARAROC is higher than the market expected excess return.
B
Accept the project because the ARAROCis higherthan the market expected excess return.
C
Reject the project because the ARAROC is lower than the risk-free rate.
D
Accept the project because the ARAROC is lower than the risk-free rate.