Question: Manipulating CAPM Use the basic equation for the capital asset pricing model (CAPM) to work each of the followng problems. a. Find the requied return
Manipulating CAPM Use the basic equation for the capital asset pricing model (CAPM) to work each of the followng problems. a. Find the requied return for an asset whth a beta of 1.23 when the nsk-free rate and market retuin are 10% and 17%, respectwely b. Find the risk free rote for a firm with a required retum of 10.882% and a beta of 1.85 when the market retum is 8% c. Find the market retum for an asset with a required return of 12.073% and a beta of 0.95 when the risk free iate is 7%. d. Find the bota for an asset with a fequited returm of 14.48% when the risk fre rate and market feturn ate 9% and 14.9%, 1espectively a. The requied retum for an asset with a beta of 123 when the nisk.tee rate and maket return are 10% and 17%, respectively, is (Round to two decimal places)
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