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Nob-Orrow Inc. is considering an investment in a project that is similar in risk to its existing projects. The firm makes no use of debt

Nob-Orrow Inc. is considering an investment in a project that is similar in risk to its existing projects. The firm makes no use of debt and is entirely financed by common stock with a beta of 1.4. The expected return on the market portfolio is 10 percent and the risk-free rate is 4 percent. The required rate of return on this project is:

A. 10%

B. 12.4%

C. 6%

D. none of these

E. 14%

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