A project under consideration has an internal rate of return of 15% and a beta of .8. The risk-free rate is 5%, and the expected rate of return on the market portfolio is 15%.
a-1. What is the required rate of return on the project? (Do not round intermediate calculations. Enter your answer as a whole percent.)
Required rate of return %
a-2. Should the project be accepted?
Yes
No
b-1. What is the required rate of return on the project if its beta is 1.8? (Do not round intermediate calculations. Enter your answer as a whole percent.)
Required rate of return %
b-2. Should the project be accepted?
Yes
No