Suppose that the risk-free interest rate is 4% per year, and the expected return on the market portfolio is 10% per year. The standard deviation of the return on the market portfolio is 24% per year. A consumer products company, ACC Corp, has a standard deviation of return of 45% per year, and a correlation with the market of 0.28

a) What is ACCs beta?

b) If the CAPM holds, what is ACCs required rate of return on equity?