Suppose that Apex Health Services has four different projects. These projects are listed below,

along with the amount of capital invested and estimated corporate and market betas:

Project Amount Invested Market Beta

Walk$-$in clinic $$500,0001\mathrm{.}1$

MRI facility $$2,000,0001\mathrm{.}5$

Clinical laboratory $$1,500,0000\mathrm{.}8$

X$-$ray laboratory $$1,000,0001$

$$5,000,000$

a$.$ What is the overall market beta of Apex Health Services?

b$.$ How does the riskiness of Apex's stock compare with the riskiness of an average stock?

c$.$ Would stock investors require a rate of return on Apex that is greater than, less than, or the

same as the return on an average$-$risk stock?