1. The table below reports the historic returns of various asset classes and firm Betas:

Equity	Corporate Debt	T-Bonds	T-Bills	Firm 1 Beta	Firm 2 Beta	Firm 3 Beta
10%	6%	5%	3%	0.6	1	1.7

2. Suppose Firm 1 is taking on a 10 year project. What is the appropriate cost of equity for this project? (Report you answer as a percent: i.e. 10.5% = 10.5)