Sisyphean industries is seeking to raise capital from a large group of investors to fund a new project. Suppose that the efficient portfolio has an expected return of? 14% and a volatility of? 20%. ? Sisyphean's new project is expected to have a volatility of? 40% and a? 70% correlation with the efficient portfolio. The risk minus−free rate is? 4%.
The required return for? Sisyphean's new project is closest? to:
A. ?24%
B. ?18%
C. ?14%
D. ?10%