6 The Capital Asset Pricing Model (CAPM). As financial manager of North West Enterprises you are required, using the capital asset pricing model (CAPM), to calculate the required rate of return and the risk premium for the following list of potential investment projects:

Project Systematic risk, β
A 0.90 B 0.00 C 1.25 D 1.50 E −0.75 You have also determined that the risk-free rate is 7 per cent and that the return on the market portfolio is 16 per cent.