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Given: RM = 13%; RF = 3%, OM= 8%; BA 1.25; 0A,M= 80 (Or 0.008000 if you prefer to use decimals rather than percentages) Question

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Given: RM = 13%; RF = 3%, OM= 8%; BA 1.25; 0A,M= 80 (Or 0.008000 if you prefer to use decimals rather than percentages) Question One: Calculate the CAPM required rate of return on the risky asset, A using the covariance as the X-axis. Question Two: Calculate the CAPM required rate of return on the risky asset, A using the beta as the X-axis. Question Three: If the answers to questions 1 and 2 are different from one another, why do you think they are different? If they are equal, why do you think they are equal? For either choice, explain in your own words and with the use of the given parameters and Calculations

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