Question: 12. Use the basic equation for the capital asset pricing model (CAPM) to work each of the following Manipulating CAPM problems a. Find the required

12. Use the basic equation for the capital asset pricing model (CAPM) to work each of the following Manipulating CAPM problems a. Find the required return for an asset with a beta of 1.69 when the risk-free rate and market return are 10% and 12%, respectively b. Find the risk-free rate for a firm with a required return of 15.129% and a beta of 1.39 when the market return is 13%. C. Find the market return for an asset with a required return of 6.086% and a beta of 0.51 when the risk-free rate is 3%. d. Find the beta for an asset with a required return of 7.956% when the risk-free rate and market return are 3% and 5.8%, respectively. a. The required return for an asset with a beta of 1.69 when the risk-free rate and market return are 10% and 12%, respectively, is %. (Round to two decimal places.) b. The risk-free rate for a firm with a required return of 15.129% and a beta of 1.39 when the market return is 13% is %. (Round to two decimal places.) C. The market return for an asset with a required return of 6.086% and a beta of 0.51 when the risk-free rate is 3% is %. (Round to two decimal places.) d. The beta for an asset with a required return of 7.956% when the risk-free rate and market return are 3% and 5.8%, respectively, is . (Round to two decimal places.)
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
