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A project under consideration has an internal rate of return of 14% and a beta of 0.6. The risk-free rate is 9%, and the expected

A project under consideration has an internal rate of return of 14% and a beta of 0.6. The risk-free rate is 9%, and the expected rate of return on the market portfolio is 14%.

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 1.6.

Required return %

b-2. Should the project be accepted?
Yes
No

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