Capital asset valuation model

1. Using the capital asset valuation model (CAPM) equation, determine the required return for the shares of the following companies. if the market return is 7.50% (Rm = 7.50%) and the risk-free asset return is 1.25% (RF = 1.25%). You must show all counts to receive a score. Active Beta SKI 0.65 COST 0.90 SU 1.42 AMZN 1.57 V 0.94 2. If the return on the risk-free asset is 2.25% (RF = 2.25%) and the market retum is 6.50% (Rm = 6.50%), what is the beta of Bank of America, BAC, if it has had a return of 9.14%? You must show all counts to receive a score. 3. Consider the assets in problem 1 with their respective beta coefficients to answer the following questions: a. Which of the assets represents the most sensitive to fluctuations or changes in market returns and why? What impact in terms of risk and return would this asset have if you add it to an investment portfolio in a higher proportion than all other assets? b. Which asset represents the least sensitive to fluctuations or changes in market returns and why? What impact in terms of risk and return would this asset have, if you add it to an investment portfolio in a greater proportion than all other assets