Question: 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
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 1.79 when the risk-free rate and market return aro 7% and 11%, respectively b. Find the risk-free rate for a firm with a required return of 10.811% and a bela of 0.26 when the market return is 14% C. Find the market return for an asset with a required return of 12.016% and a bota of 0.64 when the risk-free rate is 10% d. Find the beta for an asset with a required return of 13.704% when the risk-free rate and market retum are 9% and 122% respectively a. The required return for an asset with a bota of 1.79 when the risk-free rate and market return are 7% and 11%, respectively. Is % (Round to two decimal places.) b. The risk-free rate for a firm with a required return of 10.811% and a bota of 0.26 when the market return is 14% is % (Round to two decimal places.) c. The market retum for an asset with a required return of 12.016% and a beta of 0.64 when the risk-free rate is 10% is %. (Round to two decimal places.) d. The beta for an asset with a required return of 13.704% when the risk-free rate and market retum are 9% and 12.2%, respectively is. (Round to two decimal places
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