FNCE 330 corporate finance

4. Answer the following questions using the CAPM. a) Find the market return for an asset with a required rate of return of 14.5% and a beta of 1.2 when the risk-free rate is 3.5%. b) Find the risk=free rate for an asset with a required return of 12.8% and a beta of 0.5 when the market return is 14%. 5. Asset A has a beta of 1.4. Asset B has a beta of -0.25. Be sure to include the correct sign in your answers to each of the following. You answer should be in the form of a percent. a) If the market return increased by 12%, by how much would Asset A's return be expected to change? b) If the market return increased by 8% , by how much would Asset B's return be expected change. 6. Suppose beta = 1.75. Give a technical definition of beta using the labels of the axes for determining the value of beta on the appropriate graph