TASK 1
CAPM Model=
Required rate of return= risk free+ (market return- t=risk free rate) * Beta
From the following data
https://libertystreeteconomics.newyorkfed.org/2015/04/please-read-this-before-betting-against-government-bond-betas.html#.VtB59dB-6zc
Beta for 10year bond = 0.16
The return for the government bond is
From the following data the 10years bond interest rate 1.77%
https://www.bloomberg.com/markets/rates-bonds
Using CAPM
Required rate of return = 1.77 %+( 6%-1.77%)*0.16
Require rate of return= 1.77%+0.6768%
= 2.4468%
I have used the data for 10 years since the projects period is 10 years