Question: A project under consideration has an internal rate of return of 13% and a beta of 0.5. The risk-free rate is 3% and the expected

A project under consideration has an internal rate of return of 13% and a beta of 0.5. The risk-free rate is 3% and the expected rate of return on the market portfolio is 11%.

a. Should the project be accepted?

b. Should the project be accepted if its beta is 1.6?

c. Does your answer change?

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