Capital asset pricing model (CAPM). For each case in the following table, use the capital asset pricing model to find the required retum. Market Case retur, A B D E Risk-free rate, RF 1% 2 5 6 4 8% 13 12 12 10 Beta, 1.30 0.90 -0.20 1.00 0.60 Solution Case A Risk-free rate Market return Beta Required retum 1% 8% 1.30 Case B Risk-free rate Market return Beta Required retum 2% 13% 0.90 Case C Risk-free rate Market return Beta Required retum 5% 12% 0.20 6% Case D Risk-free rate Market return Beta Required retum 12% 1.00 4% Case E Risk-free rate Market return Beta Required return 10% 0.60