2. Historically, Baker projects have had an average beta of 1.2, which indicates the higher risk levels for the firm. Assuming the market risk premium (MRP) currently estimated to be 7.0% and the risk-free rate is 5.15%, what is the required return for an "average" Baker project using based on its average project beta? Show the average required return to 2 decimal places (x.xx%).

3. The potential projects that Baker is considering have the following expected cash flows. Each project has its own unique risk and as such, the beta on each project is given. Using the data from #2 for the risk-free rate and market risk premium, what is the required percentage return for each of the projects? Show the required returns to 2 decimals, that is xx.xx%.

\begin{tabular}{|l|c|c|c|c|} \hline#3 & Project A & Project B & Project C & Project D \\ \hline Beta & 0.9 & 1.4 & 1.1 & 1.3 \\ \hline Req. & & & & \\ return & & & & \\ (show & & & & \\ work) & & & & \\ \hline \end{tabular}