Question: Polycorp is considering a new project. The project has beta () that is twice that of the firm's existing assets (projects). Polycorp's existing assets have

Polycorp is considering a new project. The project has beta () that is twice that of the firm's existing assets (projects). Polycorp's existing assets have a required return (cost of capital) of 10%, the market risk premium is 5% and the risk free rate is 4%.

Calculate the beta for the new project.

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