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 bota of 0.75 when the risk free rate and market return are 7% and 10%, respectively b. Find the free rate for a firm with a required return of 17.815% and a beta of 1.51 when the market reum is 15% c. Find the market return for an asset with a required return of 7340% and a beta of 127 when the risk free rate is 4% d. Find the bote for an asset with a required return of 14.705% when the risk free rate and market retum are 7% and 13.7%, respectively a. The required return for an asset with a bota of 0.75 when the risk-free rate and market return aro 7% and 10%, respectively, is (Round to two decimal places) b. The rink free rate for a firm with a required return of 17.816% and a beta of 1.51 when the market return is 15% %. (Round to two decimal places) a. The market return for an asset with a required return of 7 340% and a beta of 1.27 when the risk free rate is 4% in % (Round to two decimal places.) d. The bota for an asset with a required return of 14.705% when the risk-free rate and market return aro 7% and 13.7%, respectively, I. (Round to two decimal places.)
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