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Calculate the required rate of return for an asset that has a beta of 1.79, given a risk-free rate of 4.4% and a market return
Calculate the required rate of return for an asset that has a beta of
1.79,
given a risk-free rate of
4.4%
and a market return of
8.5%.
b.If investors have become more risk-averse due to recent geopolitical events, and the market return rises to
11.9%,
what is the required rate of return for the same asset?
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Part 1
a. The required rate of return for the asset is
enter your response here
%.
(Round to two decimal places.)
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