A project under consideration has an internal rate of return of 14% and a beta of .8. The risk-free rate is 4%, and the expected rate of return on the market portfolio is 14%.

a-1.	What is the required rate of return on the project? (Do not round intermediate calculations. Enter your answer as a whole percent.)

Required rate of return

%

a-2.

Should the project be accepted?

	Yes
	No

b-1.	What is the required rate of return on the project if its beta is 1.8? (Do not round intermediate calculations. Enter your answer as a whole percent.)

Required rate of return

%

b-2.

Should the project be accepted?

	Yes
	No