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help in finance home work Assume that the real interest rate is 2.0%; Expected Inflation is 3.0%; Beta is 1.30; Required Return on the Market

help in finance home work

Assume that the real interest rate is 2.0%; Expected Inflation is 3.0%; Beta is 1.30; Required Return on the Market is 10.0%.

Use CAPM to calculate:-

1- The risk-free rate. and The market risk-premium

2 - The Expected or Required rate of return.

3 - If Expected Inflation is 4.0%; The Expected rate of return becomes?

4 - If the Required Return on the Market is 12.0%; The Expected rate of return becomes?

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