Question: A project under consideration has an internal rate of return of 12% and a beta of 0.8. The risk-free rate is 7%, and the expected
A project under consideration has an internal rate of return of 12% and a beta of 0.8. The risk-free rate is 7%, and the expected rate of return on the market portfolio is 12%.
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 1.80?(Do not round intermediate calculations. Enter your answer as a whole percent.)
d.If project's beta is 1.80, should the project be accepted?
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