Manipulating CAPM Use the basic equation for the capital asset pricing model (CAPM) to work each...

  

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Manipulating CAPM 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 1.55 when the risk-free rate and market return are 8% and 12%, respectively. b. Find the risk-free rate for a firm with a required return of 14.609% and a beta of 1.21 when the market return is 13%. c. Find the market return for an asset with a required return of 15.220% and a beta of 1.46 when the risk-free rate is 7%. d. Find the beta for an asset with a required return of 11.146% when the risk-free rate and market return are 8% and 10.6%, respectively. a. The required return for an asset with a beta of 1.55 when the risk-free rate and market return are 8% and 12%, respectively, is 6.52%. (Round to two decimal places.) b. The risk-free rate for a firm with a required return of 14.609% and a beta of 1.21 when the market return is 13% is %. (Round to two decimal places.) c. The market return for an asset with a required return of 15.220% and a beta of 1.46 when the risk-free rate is 7% is %. (Round to two decimal places.) d. The beta for an asset with a required return of 11.146% when the risk-free rate and market return are 8% and 10.6%, respectively, is (Round to two decimal places.) Manipulating CAPM 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 1.55 when the risk-free rate and market return are 8% and 12%, respectively. b. Find the risk-free rate for a firm with a required return of 14.609% and a beta of 1.21 when the market return is 13%. c. Find the market return for an asset with a required return of 15.220% and a beta of 1.46 when the risk-free rate is 7%. d. Find the beta for an asset with a required return of 11.146% when the risk-free rate and market return are 8% and 10.6%, respectively. a. The required return for an asset with a beta of 1.55 when the risk-free rate and market return are 8% and 12%, respectively, is 6.52%. (Round to two decimal places.) b. The risk-free rate for a firm with a required return of 14.609% and a beta of 1.21 when the market return is 13% is %. (Round to two decimal places.) c. The market return for an asset with a required return of 15.220% and a beta of 1.46 when the risk-free rate is 7% is %. (Round to two decimal places.) d. The beta for an asset with a required return of 11.146% when the risk-free rate and market return are 8% and 10.6%, respectively, is (Round to two decimal places.)

Answer rating: 100% (QA)

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