Q3.b. The Fed has just announced that the US Treasury bill rate is 4%. From the article in Financial Times, you are aware that the market risk premium is 7%. i. Suppose that you are given an opportunity to invest in two new ventures, each with the betas of 0.75 and 1.75. What are the project cost of capital for each of the venture? ii. Which of the following capital investments have positive NPVs? Project Beta Internal Rate of Return (%) Alpha 1.0 14 Delta 0.4 7 Gamma 0 6 1.6 20 Epsilon Zeta 2.0 18 111. Are the following two statements correct? Explain. a. "The expected standard deviation of returns from a portfolio of securities is the average of the standard deviations of returns of the individual securities that make up the portfolio, weighted by the value of the securities in the portfolio." b. The capital asset pricing model tells us that a security with a of 2 will be expected to yield a return that is twice that of a security whose B is 1