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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 a beta of 1.43 when the risk-free rate and market return are 6% and 12%, respectively. b. Find the risk-free rate for a firm with a required return of 20.020% and a beta of 1.94 when the market return is 15%. c. Find the market return for an asset with a required return of 6.610% and a beta of 0.23 when the risk-free rate is 6%. d. Find the beta for an asset with a required return of 6.898% when the risk-free rate and market return are 5% and 7.6%, respectively. ..!! a. The required return for an asset with a beta of 1.43 when the risk-free rate and market return are 6% and 12%, respectively, is %. (Round to two decimal places.) b. The risk-free rate for a firm with a required return of 20.020% and a beta of 1.94 when the market return is 15% is %. (Round to two decimal places.) beta of 0.23 when the risk-free rate is 6% is c. The market return for an asset with a required return of 6.610% and %. (Round to two decimal places.) (Round to two decimal d. The beta for an asset with a required return of 6.898% when the risk-free rate and market return are 5% and 7.6%, respectively, is places.)
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