a. Calculate the required rate of return for an asset that has a beta of 1.80, given a risk-free rate of 5.0% and a market return of 10.0%.

b.If investors have become more risk-averse due to recent geopolitical events, and the market return rises to 13.0%, what is the required rate of return for the same asset?

c.How does risk affect the required return on an asset? How does it affect the value of the asset?