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ch 8 question 7 plz answer all parts Manipulating CAPM Use the basic equation for the capital asset pricing model (CAPM) to work each of
ch 8 question 7 plz answer all parts
Manipulating CAPM Use the basic equation for the capital asset pricing model (CAPM) to work each of the following problems. a. Find the required return for an asset with a beta of 1.44 when the risk-free rate and market return are 10% and 18%, respectively. b. Find the risk-free rate for a firm with a required return of 14.530% and a befa of 1.11 when the market retum is 14% c. Find the market return for an asset with a required return of 14.636% and a beta of 1.73 when the risk-froe rate is 5%. d. Find the beta for an asset with a required return of 7.656% when the risk-free rate and market return are 6% and 8.4%, respectively. a. The required return for an asset with a beta of 1.44 when the risk-free rate and market retum are 10% and 18% respectively, is %. (Round to two decimal places.) Step by Step Solution
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