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A project under consideration has an internal rate of return of 15% and a beta of 0.8. The risk-free rate is 5%, and the expected

A project under consideration has an internal rate of return of 15% and a beta of 0.8. The risk-free rate is 5%, and the expected rate of return on the market portfolio is 15%.

Calculate the required return.

Required return %

Should the project be accepted?

Yes

No

Calculate the required return if its beta is 1.8.

Required return %

Should the project be accepted?

Yes

No

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