(1) Given the following on 5 independent projects:

Project IRR Beta RADR Accept/ Reject

A 7.01% 0.2

B 11.90% 1

C 14.50% 1.2

D 11.00% 0.8

E 18.00% 2

Calculate the risk adjusted discount rate for each project and determine whethereach project should be accepted or rejected. R_m= 12% and R_f= 5%

Enter your answers for RADR as a percentage accurate to one decimal place and enter the % sign as well. eg 10.1 should be entered as 10.1%

For the accept/ reject decision enter the word accept or reject in lowercase.

Do not use commas.

Do not use leading zeros.

(2)Portfolio A has a covariance with Portfolio B of .09 and a covariance with the market of .06 while the standard deviation of the market is 20%. What is the expected return on Portfolio A if the risk free rate is .04 (4%) and the expected return on the market is 12%?

Give your answer as a percentage with accuracy to two decimal places, eg enter 11.00% as 11.00

(Please show calculation for understanding. Thank you.)