As a financial analyst, you are tasked with evaluating a capital-budgeting project. You were instructed to use the IRR method, and you need to determine an appropriate hurdle rate. The risk-free rate is 5%, and the expected market rate of return is 10%. Your company has a beta of 0.67, and the project that you are evaluating is considered to have a risk equal to the average project that the company has accepted in the past. According to CAPM, the appropriate hurdle rate would be

Group of answer choices

0.67%.

10%.

5%.

28.35%.

8.35%.