The all-equity-financed Lasar plc has a Beta of 0.8. What rate of return should it seek on new investment:

(i) with similar risk to existing activities?

(ii) with 25 per cent greater systematic risk compared to existing activities?

(iii) with 25 per cent lower systematic risk compared to existing activities?

The risk-free rate of interest is 6 per cent, and the expected return on the market portfolio is 11 per cent.