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Calculate the beta for the new project

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Reference no: EM132386373

Polycorp is considering a new project. The project has beta (β) that is twice that of the firm's existing assets (projects). Polycorp's existing assets have a required return (cost of capital) of 9%, the market risk premium is 7% and the risk free rate is 3%. Calculate the beta for the new project. Provide your answer accurate to two decimal places.

Reference no: EM132386373

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