Question: Redesign Corp is considering a new strategy that will increase the expected return from 12% to 13.9%, but that will also mean that their beta

Redesign Corp is considering a new strategy that will increase the expected return from 12% to 13.9%, but that will also mean that their beta value will increase from 1.2 to 1.8. The risk-free rate (Rf) is 5% and the expected market return (Rm) is 10%. Should Redesign change its strategy? Motivate with calculations and in words.

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