Question
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
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 0.810.81 when the? risk-free rate and market return are 99?% and 17 %17%?, respectively. b.??Find the ?risk-free rate for a firm with a required return of 12.98212.982?% and a beta of 1.891.89 when the market return is 10 %10%. c.??Find the market return for an asset with a required return of 8.4108.410?% and a beta of 0.560.56 when the? risk-free rate is 5 %5%. d.??Find the beta for an asset with a required return of 6.9506.950?% when the? risk-free rate and market return are 66?% and 8.5 %8.5%?, respectively. a.??The required return for an asset with a beta of 0.810.81 when the? risk-free rate and market return are 99?% and 17 %17%?, ?respectively, is nothing?%. ?(Round to two decimal? places.) b.??The? risk-free rate for a firm with a required return of 12.98212.982?% and a beta of 1.891.89 when the market return is 10 %10% is nothing?%. ?(Round to two decimal? places.) c. The market return for an asset with a required return of 8.4108.410?% and a beta of 0.560.56 when the? risk-free rate is 5 %5% is nothing?%. ?(Round to two decimal? places.) d.??The beta for an asset with a required return of 6.9506.950?% when the? risk-free rate and market return are 66?% and 8.5 %8.5%?, ?respectively, is nothing. ?(Round to two decimal? places.)
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