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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
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 beta of 1.42 when the risk-free rate and market return are 10% and 13%, respectively. b. Find the risk-free rate for a firm with a required return of 10.729% and a beta of 1.67 when the market return is 9%. c. Find the market return for an asset with a required return of 16.659% and a beta of 1.72 when the risk-free rate is 4%. d. Find the beta for an asset with a required return of 6.593% when the risk-free rate and market return are 5% and 7.7%, respectively. a. The required return for an asset with beta of 1.42 when the risk-free rate and market return are 10% and 13%, respectively, is %. (Round to two decimal places.) b. The risk-free rate for a firm with a required return of 10.729% and a beta of 1.67 when the market return is 9% is %. (Round to two decimal places.) c. The market return for an asset with a required return of 16.659% and a beta of 1.72 when the risk-free rate is 4% is %. (Round to two decimal places.) d. The beta for an asset with a required return of 6.593% when the risk-free rate and market return are 5% and 7.7%, respectively, is (Round to two decimal places.)
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