Manipulating CAPMUse 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 0.79

0.79 when therisk-free rate and market return are 9

9% and 11 %

11%, respectively.

b.Find the risk-free rate for a firm with a required return of 15.689

15.689% and a beta of 1.11

1.11 when the market return is 15 %

15%.

c.Find the market return for an asset with a required return of 9.082

9.082% and a beta of 0.56

0.56 when therisk-free rate is 5 %

5%.

d.Find the beta for an asset with a required return of 18.191

18.191% when therisk-free rate and market return are 8

8% and 15.9 %

15.9%, respectively.

a.The required return for an asset with a beta of 0.79

0.79 when therisk-free rate and market return are 9

9% and 11 %

11%, respectively, is

nothing

%. (Round to two decimalplaces.)

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