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Question 10. Using the capital asset pricing model (CAPM): (15 Marks) a. Find the required return for an asset with a beta of 2.2 when
Question 10. Using the capital asset pricing model (CAPM): (15 Marks) a. Find the required return for an asset with a beta of 2.2 when the risk-free rate 5% while market return is 32% b. What is the risk-free rate for the firm with a required return of 23.75%, and beta of 1.25, when the market return is 20%. c. Find the market return for an asset with a required return of 18% and a beta of 120 when the risk-free rate is 8%. d. Find the beta for an asset with a required return of 15% when the risk-free rate is 3% and market return 15%. Portfolio
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