You are considering an investment. After a great deal of careful research, you determine that the expected return on the investment 20%. You also...

 You are considering an investment. After a great deal of careful research, you determine that the expected return on the investment 20%. You also estimate the beta coefficient to be 1.75 and the correlation coefficient of the market return and the return on the investment is 0.57. The risk-free rate of interest is 2% and the market risk premium is 12%. (10pts) Should you accept the project? Explain.