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 retum
Manipulating CAPM Use the basic equation for the capital asset pricing model (CAPM) to work each of the following problems a. Find the required retum 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 beta of 0 26 when the market roturn is 14% c. Find the market return for an asset with a required return of 12.016% and a beta of 0.54 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 return are 9% and 122% respectively a. The required return for an asset with a beta of 1.79 when the risk-free rate and market ratum aro 7% and 11%, respectively, is 1 % (Round to two decimal places b. The risk-free rate for a firm with a required return of 10.811% and a beta of 0.26 when the market roturn is 14% s %. (Round to two decimal places.) c. 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% is 10% (Round to two decimal places) d. The beta for an asset with a required return of 13.709% when the nisk free rate and market return ate 0% and 122% respectively, Round to two decimal places)
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