An ungeared UK firm, with a Beta of 1.4, plans to invest in an emerging country that has no slock exchange. Its economy has a weak correlation (0.4) with the UK. Due to operating gearing, the foreign project is 25 per cent more risky than the UK parent. The risk-free rate is 5 per cent and the expected overall return on the UK stock market is 11 per cent p.a.What return should the UK firm seek on this project?