Nero Violins has the following capital structure:

a$.$ What is the firm's asset beta? $($Hint: What is the beta of a portfolio of all the firm's securities$?)$

Note: Do not round intermediate calculations. Round your answer to $3$ decimal places.

b$.$ Assume that the CAPM is correct. What discount rate should Nero set for investments that expand the scale of its operations

without changing its asset beta? Assume a risk$-$free interest rate of $4\%$ and a market risk premium of $5\%.$ Ignore taxes.

Note: Do not round intermediate calculations. Enter your answer as a percent rounded to $2$ decimal places.