Question: Manipulating CAPM Use the basic equation for the capital asset pricing model (CAPM) to work each of the following problems. a. Find the requirod refurn
Manipulating CAPM Use the basic equation for the capital asset pricing model (CAPM) to work each of the following problems. a. Find the requirod refurn for an asset whth a beta of 1.87 when the risk-froe rate and market retum are 9% and 11%, respectivoly. b. Find the risk-free rate for a firm with a required retum of 13.944% and a beta of 0.99 when the market retum is 14%. c. Find the market retum for an asset with a required retum of 10.737% and a beta of 0.79 when the risk-free rate is 7%. d. Find the beta for an asset with a required return of 10.392% when the risk-free rate and market retum are 9% and 11.9%, respectively. a. The reguired retum for an asset with a beta of 1.87 when the risk-free rate and market retum are 9% and 11%, respectively, is 14. (Round to two docimal places.) b. The risk-tree rate for a firm with a required return of 13.944% and a beta of 0.99 when the market rebum is 14% is Y. (Round to two decimal places) ) c. The market return tor an asset with a required retum of 10.737% and a beta of 0.70 when the risk-free rate is 7% is \%. (Round to two decimal places.) d. The beta for an asset with a required retum of 10.392% when the risk-free rate and market return are 9% and 11.9%, respectively, is (Round to two decimal places.)
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