Question
Use the required return-beta equation from the CAPM. Part 1 What is the required return for a stock if the risk-free rate is 2%, beta
Use the required return-beta equation from the CAPM.
Part 1
What is the required return for a stock if the risk-free rate is 2%, beta 0.5 and the required return for the market portfolio is 7%? (4+ decimals)
Part 2
What is the risk-free rate if beta is 1.1, the required return 7.35% and the required return for the market portfolio is 7%? (4+ decimals)
Part 3
What is beta if the risk-free rate is 2%, the required return 13% and the required return for the market is 7%? (2+ decimals)
Part 4
What is the required return for the market if the risk-free rate is 2%, beta 0.5 and the required return 13%? (3+ decimals)
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