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Capital asset pricing model (CAPM)For each of the cases shown in the following table, use the capital asset pricing model to find the required return.
Capital asset pricing model (CAPM)For each of the cases shown in the following table, use the capital asset pricing model to find the required return.
| Risk-free rate Rf
| Market return m | Beta, b |
|
A | 5% | 8% | 1.30 | |
B | 8 | 13 | 0.90 | |
C | 9 | 12 | 0.20 | |
D | 10 | 15 | 1.00 | |
E | 6 | 10 | 0.6 |
The required return for case A is %. (Round to two decimal places.)
A | 5% | 8% | 1.3 |
B | 8 | 13 | 0.9 |
C | 9 | 12 | -0.2 |
D | 10 | 15 | 1 |
E | 6 | 10 | 0.6 |
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