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1. Other things held constant, an increase in the cost of capital will result in a decrease in a project's IRR. True or False?

2. ESOPs were originally designed to help improve worker productivity, but today they are also used to help prevent hostile takeovers. True or False?

3. Market risk refers to the tendency of a stock to move with the general stock market. A stock with above-average market risk will tend to be more volatile than an average stock, and its beta will be greater than 1.0. True or False?

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