Polycorp is investigating two projects. The risk free rate is .06 and the market premium is 0.06. Project


Polycorp is investigating two plans. The occasion open reprove is .06 and the communicate bribe is 0.06. Project

A has a beta of .75 and Plan B has a beta 1.6 times that of the medium for the firm's existing plans. Projects A and B are fractions. If trustworthy the plans conciliate initially be funded by borrowing at 7%pa. Calculate the beta of plan B to two decimal places. The firm's ordinary weighted medium absorb of principal is 11% pa (antecedently leading either or twain A and B). Assume no taxes.

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