A project under consideration has an internal rate of return of 18% and a beta of 0.3. The risk-free rate is 8%, and the expected rate of return on the market portfolio is 18%.

a-1.	Calculate the required return.

Required return

%

a-2.

Should the project be accepted?

	Yes
	No

b-1.	Calculate the required return if its beta is 1.3.

Required return

%

b-2.

Should the project be accepted?

	Yes
	No