1.The Treasury bill rate is 5%, and the expected return on the market portfolio is 13%. According to the capital asset pricing model:

a.What is the risk premium on the market?

b.What is the required return on an investment with a beta of 1.8?(Do not round intermediate calculations. Enter your answer as a percent rounded to 1 decimal place.)

c.If an investment with a beta of 0.6 offers an expected return of 8.8%, does it have a positive or negative NPV?

d.If the market expects a return of 11.8% from stock X, what is its beta?(Do not round intermediate calculations. Round your answer to 2 decimal places.)

2.A project under consideration has an internal rate of return of 15% and a beta of 0.7. The risk-free rate is 5%, and the expected rate of return on the market portfolio is 15%.

a.What is the required rate of return on the project?(Do not round intermediate calculations. Enter your answer as a whole percent.)

b.Should the project be accepted?

c.What is the required rate of return on the project if its beta is 1.70?(Do not round intermediate calculations. Enter your answer as a whole percent.)

d.If project's beta is 1.70, should the project be accepted?