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

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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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