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Please bold answers in explanation, thank you Manipulating CAPM Use the basic equation for the capital asset pricing model (CAPM) to work each of the
Please bold answers in explanation, thank you
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 0.63 when the risk-free rate and market return are 9% and 13%, respectively. b. Find the risk-free rate for a firm with a required return of 21.011% and a beta of 1.64 when the market return is 16%. c. Find the market return for an asset with a required return of 11.097% and a beta of 0.98 when the risk-free rate is 8%. d. Find the beta for an asset with a required return of 12.752% when the risk-free rate and market return are 5% and 11.8%, respectively. Capital asset pricing model (CAPM) For each of the cases shown in the following table, use the capital asset pricing model to find the required return. (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Market Case Risk-free rate, RF 5% return, I'm A B 8 8% 13 12 15 Beta, b 1.30 0.90 -0.20 1.00 0.60 C 9 D 10 E 6 10Step by Step Solution
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