Assignment 2: The CAPM and Final Project 4: Report and Presentation

Part One: The CAPM

Olter, Inc. is starting its risk management program for the company and has asked for your help in determining critical risk measurements for the firm. The company has identified several factors in the market that they believe are critical for your tasks:

• The risk-free rate is 6%
• The required return on the average stock is 13%
• Olter