1. Historically, DHC projects have had an average beta of 1.15 Assuming the return on the overall market is 9.25% and the risk free rate is 1.5%, what is the required return for an "average" DHC project using based on its average project beta? Round the average required return to 2 decimal places (x.xx%). Hint: Remember that the market risk premium = return on the market - risk free rate, R = Rf + (*(Rm - Rf)) (3 pts)

Expected return for average company project =

2. The potential projects that DHC is considering have the following expected cash flows. Each project has its own unique risk and as such, the beta on each project is given. Using the data from part 2 for the risk free rate and market returns, what is the required percentage return for each of the projects? Show the required returns to 2 decimals, that is xx.xx% (4 pts)

	Project A	Project B	Project C	Project D
Beta	1.3	0.9	1.1	1.6