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Pleas solve a , b , c Suppose the risk - free rate is 5 % , and the average investor has a risk -

Pleas solve a, b, c
Suppose the risk-free rate is 5%, and the average investor has a risk-aversion coefficient of, and the standard deviation of the market portfolio is 20%.
A. What is the expected return on the market portfolio?
B. Suppose we estimate the beta of Delta as . Based on the CAPM's expected return-beta relationship, what is the expected rate of return on Delta?
C. Suppose Delta is considering a new airline route and it forecasts an internal rate of return of 11% on the investment. Based on the estimated expected return on Delta in Question B, do you have to accept or reject the new project as a financial manager?
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