You are considering Project A, with the following information (Assume all statistics given are correct): Economy Probability of Rates of Return ____ Condition State Occurring Project A Market T-Bill Bad 0.2 3.0% 0.0% 3.63% Average 0.4 10.0% 8.0% 3.63% Good 0.4 15.0% 12.0% 3.63% Expected return 10.6% 8.0% 3.63% Standard deviation 5.72% 4.38% 0% Correlation Coefficient between Project A and Market = 0.91 Compute (a) Project A's beta; and (b) the required rate of return for Project A. Round your answers to two decimal places of a whole number for beta and of % for RRR but ignore % in your answer, e.g., x.xx. (Hint: Measure Project A's beta using the statistical formula first and then RRR using the CAPM.)

You are considering Project A, with the following information (Assume all statistics given are correct): T-Bill 3.63% 3.63% Economy Probability of Rates of Return Condition State Occurring Project A Market Bad 0.2 3.0% 0.0% Average 0.4 10.0% 8.0% Good 15.0% 12.0% Expected return 10.6% 8.0% Standard deviation 5.72% 4.38% Correlation Coefficient between Project A and Market = 0.91 0.4 3.63% 3.63% 0% Compute (a) Project A's beta; and (b) the required rate of return for Project A. Round your answers to two decimal places of a whole number for beta and of % for RRR but ignore % in your answer, e.g., X.XX. (Hint: Measure Project A's beta using the statistical formula first and then RRR using the CAPM.) Project A's beta = Required rate of return for Project A = %