A project under consideration has an internal rate of return of 14% and a beta of 0.7. The risk-free rate is 4%, and the expected rate of return on the market portfolio is 14%.
a-1. Calculate the required return.
Required return __________%
a-2. Should the project be accepted? Yes or No?
b-1. Calculate the required return if its beta is 1.7.
Required return ____________%
b-2. Should the project be accepted? Yes or No?