XYZ is evaluating a project using the capital asset pricing model (CAPM). Relevant information is presented in the following table. Return Asset A 7% Beta A 0 Asset B 14% Beta B1 Project 1.39

a.The required rate of return for the project is Blank 1. Fill in the blank, read surrounding text. %. (Round to two decimal places.)

b.The risk premium for the project is Blank 2. Fill in the blank, read surrounding text. %. (Round to two decimal places.)