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 13%.

a-1.	Calculate the required return.

Required return

%

a-2.	Should the project be accepted?
	Yes No

b-1.	Calculate the required return if its beta is 1.5.

Required return

%

b-2.	Should the project be accepted?
	Yes No