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What rate of return dmt require on project of average risk

Problem: The DMT Company is financed entirely with equity. DMT has a beta of 1.20 and the current risk-free rate of 9.5%. If the expected market return (Km)is 14%, what rate of return should DMT require on a project of average risk? [ke=krf + (km-krf)(B)]

The following choices are one of the answers:

a. 14.9%

b. 15.4%

c. 14.0%

d. none of the above

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Finance Basics: What rate of return dmt require on project of average risk

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