What is the required rate of return on the project

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Reference no: EM131561705

A project under consideration has an internal rate of return of 12% and a beta of .8. The risk-free rate is 7%, and the expected rate of return on the market portfolio is 12%.

a-1. What is the required rate of return on the project? (Do not round intermediate calculations. Enter your answer as a whole percent.)

Required rate of return %

a-2. Should the project be accepted?

Yes

b-1. What is the required rate of return on the project if its beta is 1.8? (Do not round intermediate calculations. Enter your answer as a whole percent.)

Required rate of return %

b-2. Should the project be accepted?

Yes

Reference no: EM131561705

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