Question: Explain based on the Capital Asset Pricing Model (CAPM) and the coefficient for the firms Zebra Corp and Slot, the following and show calculations and

Explain based on the Capital Asset Pricing Model (CAPM) and the coefficient for the firms Zebra Corp and Slot, the following and show calculations and qualitative analysis for each premise: Premise: The firm Zebra Corp has a beta coefficient of 2.25. On the other hand, Slot has a beta of .95. The risk-free rate is 3% and the rate of return expected in the market (market expected return) is 10%. According to the CAPM Model and making use of the information provided,

1. What will be the Required Rate of Return for both firms? Show computations A. Required Rate of Return for Zebra Corp Corp.

B. Required Rate of Return for Slot Corp.

C. Explanation of the results, in terms of risk and return: 2. If we now assume that the market "goes down" (decreases its return by 20%, how do the results of question # 1 change? Show Computations and then explain the results:

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