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The following data has been gathered concerning a particular investment and conditions in the market. 4.5% Risk-free rate Market return 11.0% Beta of investment

The following data has been gathered concerning a particular investment and conditions in the market. 4.5%

The following data has been gathered concerning a particular investment and conditions in the market. 4.5% Risk-free rate Market return 11.0% Beta of investment 1.35 a) Briefly comment on Risk-free rate (R), Market return (Rm) and Beta of investment (B). b) According to the CAPM, calculate the required return (R.) for this investment and comment on it.

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