2. 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 0.90 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 15.00% and a beta of 1.25 when the market return is 14%. c. Find the market return for an asset with a required return of 16.00% 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 15.00% when the risk-free rate and market return are 10% and 12.5%, respectively

a. What is the required return for an asset with a beta of 0.90 when the risk-free rate and market return are 8% and 12%, respectively?

(Round to two decimal places.)

b. What is the risk-free rate for a firm with a required return of 15.00% and a beta of 1.25 when the market return is 14%?

(round to two decimal places)

c. What is the market return for an asset with a required return of 16.00% and a beta of 1.10 when the risk-free rate is 9%?

(round to two decimal places)

d. What is the beta for an asset with a required return of 15.00% when the risk-free rate and market return are 10% and 12.5%, respectively?

(round to two decimal places.)