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if we know that a firm has a net profit ing to P8-26 Manipulating CAPM Use the basic equation for the capital asset pricing model

if we know that a firm has a net profit
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ing to P8-26 Manipulating CAPM Use the basic equation for the capital asset pricing model (CAPM) to work each of the following problems. a. Find the required return for an asset with a beta of 0.90 when the risk-free rate and market return are 8% and 12%, respectively. b. Find the risk-free rate for a firm with a required return of 15% and a beta of 1.25 when the market return is 14%. c. Find the market return for an asset with a required return of 16% and a beta of 1.10 when the risk-free rate is 9%. d. Find the beta for an asset with a required return of 15% when the risk-free rate and market return are 10% and 12.5%, respectively

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