Question: 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
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 0.54 when the risk-free rate and market return are 6 % and 8 % , respectively.
b.Find the risk-free rate for a firm with a required return of 6.368 % and a beta of 0.26 when the market return is 11 % .
c.Find the market return for an asset with a required return of 16.130 % and a beta of 1.18 when the risk-free rate is 8 % .
d.Find the beta for an asset with a required return of 11.945 % when the risk-free rate and market return are 6 % and 10.1 % , respectively.
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