Question: HW help ? Manipulating CAPM Use the basic equation for the capital asset pricing model (CAPM) to work each of the following problems. a. Find
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 1 45 when the risk-free rate and market return are 8% and 15%, respectively. b. Find the risk-free rate for a firm with a required return of 13.204% and a beta of 1.67 when the market return is 11% c. Find the market return for an asset with a required return of 6.756% and a beta of 0.65 when the risk free rate is 4% d. Find the beta for an asset with a required return of 16.138% when the risk-free rate and market return are 9% and 13.3%, respectively, a. The required return for an asset with a beta of 1.45 when the risk-free rate and market return aro 8% and 15%, respectively, is %. (Round to two decimal places) b. The risk free rate for a firm with a required return of 13.204% and a beta of 1.67 when the market return is 11% is %. (Round to two decimal places.) c. The market return for an asset with a required return of 6.756% and a beta of 0.65 when the risk-free rate is 4% is % (Round to two decimal places) d. The beta for an asset with a required return of 16.438% when the risk troo rate and market return are 9% and 13.3%, respectively, is (Round to two decimal places.)
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
