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Determine Performance Using the CAPM Model For each case shown in the following table, use the CAPM model to calculate the required performance Case Risk-free

Determine Performance Using the CAPM Model For each case shown in the following table, use the CAPM model to calculate the required performance

Case

Risk-free rate Rf

Market performance rm

Beta

A

7%

8

1.30

B

8

11

0.90

C

12

12

-0.20

D

13

15

1.00

E

5

11

0.60

Formula needed per case***

CAPM es r = rf + (rm - rf)

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