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Problem 15 * Intro Use the required return-beta equation from the CAPM. Part 1 18 Attempt 1/5 for 10 pts. What is the required return
Problem 15 * Intro Use the required return-beta equation from the CAPM. Part 1 18 Attempt 1/5 for 10 pts. What is the required return for a stock if the risk-free rate is 2%, beta 0.7 and the required return for the market portfolio is 6%? 4.80% Correct r=rs + B(rm -r) = 0.02 +0.7(0.06 -0.02) = 0.048 Part 2 18 Attempt 5/5 for 0 pts. What is the risk-free rate if beta is 1.1, the required return 6.3% and the required return for the market portfolio is 6%? 6.3% Incorrect r=rs + B(rm -rs) 0.063 - 1.1. 0.06 == 1 B 1 1.1 T 0.03 Part 2 B|Attempt 5/5 for 0 pts. What is the risk-free rate if beta is 1.1, the required return 6.3% and the required return for the market portfolio is 6%? 6.3% Incorrect r=rf + B (rm - rf) r - Brm 0.063 - 1.1. 0.06 or = 1-B 1 - 1.1 0.03 18 Attempt 1/5 for 10 pts. Part 3 What is beta if the risk-free rate is 2%, the required return 11% and the required return for the market is 6%? 2+ decimals Submit Part 4 18 Attempt 1/5 for 10 pts. What is the required return for the market if the risk-free rate is 2%, beta 0.7 and the required return 11%? 3+ decimals Submit Part 4 IB Attempt 1/5 for 10 pts. What is the required return for the market if the risk-free rate is 2%, beta 0.7 and the required return 11%? 3+ decimals Submit
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