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a. Calculate the required rate of return for an asset that has a beta of 2, given a risk-free rate of 4.0% and a market
a. Calculate the required rate of return for an asset that has a beta of 2, given a risk-free rate of 4.0% 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 12.0%, 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?
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