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I NEED YOUR HELP ASAP! THANKS... I WILL RATE (10 points) Use the basic equation for the capital asset pricing model (CAPM) to work each
I NEED YOUR HELP ASAP!
THANKS... I WILL RATE
(10 points) Use the basic equation for the capital asset pricing model (CAPM) to work each of the following problems. a. A stock has a beta of 1.25, the expected return on the market is 14 percent, and the risk-free rate is 5.2 percent. What must the expected return on this stock be? b. A stock has an expected return of 13 percent, the risk-free rate is 4.5 percent, and the market risk premium is 7 percent. What must the beta of this stock be? C. A stock has an expected return of 10 percent, its beta is . 70, and the risk-free rate is 5.5 percent. What must the expected return on the market be? d. A stock has an expected return of 15 percent, its beta is 1.45, and the expected return on the market is 12 percent. What must be risk-free rate beStep by Step Solution
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