(1) 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 9%, the market risk premium is 5% and the risk free rate is 4%. Calculate the beta for the new project. Provide your answer accurate to two decimal places.

(2) The annual nominal rate is j_m= 0.15pa. What is the effective annual rate as a percentage to two decimal places? The number of compounding periods is 7. Enter your answer as a decimal eg 17.42% = .1742 to four decimal places. Accuracy of one basis point. Tip: use excel to get the required accuracy.

(3)Given the information in the table below calculate the Beta of a portfolio that combines investments A, B, and C in the proportions given.

Investment Beta Weight

A 0.6 0.3

B 1.2 0.2

C 1.6 0.5

(4) What is the beta of an asset with an expected return of 16%, if the risk-free rate of interest is 6% and the expectedmarket portfolio risk premium is 6%?Accurate to two decimal places.

(5) Polycorp's existing assets (projects) have a average beta of 1.2. The market risk premium is 7% and the risk free rate is 5%. What is the risk adjusted rate of return RADR required for these assets (the cost of capital of the existing assets)? provide your answer as a percentage but do not enter the % sign. An answerof 10.456% should be entered as 10.46.

(Please show calculation for understanding, Thank you)