Question
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
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 .90 when the risk-free rate and market return are 8% and 12% respectivley
B) Find the risk-free rate for a firm with a required return of 15.000% and a beta of 1.5 when the market return is 14%
C) Find the market return for an asset with a required return of 15.996% and a beta of 1.10 when the risk-free rate is 9%
D) Find the beta for an asset with a required return of 15.000% when the risk-free rate and market return are 10% and 12.5% respectively
Round to 2 decimal points.
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