A project under consideration has an internal rate of return of 14% and a beta of 0.6. The risk-free rate is 9%, and the expected rate of return on the market portfolio is 14%.

  

a-1.	Calculate the required return.

  

Required return

%

 Should the project be accepted?
b-1.Calculate the required return if its beta is 1.6.
  Required return%  
b-2.Should the project be accepted?
 
 

Answer rating: 100% (QA)

a1 To calculate the required return using the Capital Asset Pricing Model CAPM we use the f... View the full answer