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.)