Risk-free rate-expected rate of return on market portfolio

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Reference no: EM13950112

A project under consideration has an internal rate of return of 17% and a beta of 0.4. The risk-free rate is 7%, and the expected rate of return on the market portfolio is 17%.

a-1. Calculate the required return.

a-2. Should the project be accepted?

b-1. Calculate the required return if its beta is 1.4.

b-2. Should the project be accepted?

Reference no: EM13950112

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