Historically, DeSoto projects have had an average beta of 1.25, which indicates the higher risk levels for the firm. Assuming the market risk premium (MRP) currently estimated to be 8.0% and the risk-...

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Extracted text: Historically, DeSoto projects have had an average beta of 1.25, which indicates the higher risk levels for the firm. Assuming the market risk premium (MRP) currently estimated to be 8.0% and the risk- free rate is 1.75%, what is the required return for an "average" DeSoto project using based on its average project beta? Show the average required return to 2 decimal places.