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

1.09

when the risk-free rate and market return are

8%

and

16%,

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

11.573%

and a beta of

0.54

when the market return is

15%.

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

14.551%

and a beta of

0.82

when the risk-free rate is

10%.

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

20.149%

when the risk-free rate and market return are

10%

and

15.1%,

respectively.

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

1.09

when the risk-free rate and market return are

8%

and

16%,

respectively, is

nothing%.

(Round to two decimal places.)b.The risk-free rate for a firm with a required return of

11.573%

and a beta of

0.54

when the market return is

15%

is

nothing%.

(Round to two decimal places.)c. The market return for an asset with a required return of

14.551%

and a beta of

0.82

when the risk-free rate is

10%

is

nothing%.

(Round to two decimal places.)d.The beta for an asset with a required return of

20.149%

when the risk-free rate and market return are

10%

and

15.1%,

respectively, is

nothing.

(Round to two decimal places.)