Answer questions 15, 16, 17, and 18 based upon the following information: Assume the CAPM is true. Further assume the risk free rate is 5%, the expected return on the market portfolio is 12% and the standard deviation of market returns is 30%. Q15. Ifa project with a beta of 1.3 offers an expected return of 14.5% then the project Has positive net present value and you should invest in it. b. Has a negative net present value and you should not invest in it. c. Has a zero net present value and you should invest in it. d. Has a zero net present value and you should not invest in it. 16. If investors require a return of 11% from holding Co X's stock then Co X's stock beta is closest to 0.86. 1.00, c. 1.86. d. 2.57. b. 017. A large, diversified portfolio, with almost no unique risk, has a beta of 1.5. The standard deviation of portfolio returns is closest to 10%. b. 2096. 30%. 45%. A project has a beta of 1 and standard deviation of returns equal to 40%. If this project offers an expected return of 12.5% then the project Q 18. a. Has a zero net present value and you should invest in it. 6 Has a zero net present value and you should not invest in it. c. Has a negative net present value and you should not invest in it. d. Has a positive net present value and you should invest in it