a) If the CAPM is correct, what would be the expected return of a risky asset with a beta of 1 2, given a risk free rate of 3 and an expected market risk premium of 4 5 b) If the CAPM is correct, what would be the expected return of a risky asset with a beta of 0 8, given a risk free rate of 4 and an expected return of the market of 9

Question: a) If the CAPM is correct, what would be the expected return of a risky asset with a beta of 1.2, given a risk free

a) If the CAPM is correct, what would be the expected return of a risky asset with a beta of 1.2, given a risk free rate of 3% and an expected market risk premium of 4.5%?

b) If the CAPM is correct, what would be the expected return of a risky asset with a beta of 0.8, given a risk free rate of 4% and an expected return of the market of 9%

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