Question: Only need D Manipulating CAPM Use the basic equation for the capital asset pricing model (CAPM) to work each of the following problems. a. Find
Only need D
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 beta of 0.42 when the risk-free rate and market return are 8% and 12%, respectively. b. Find the risk-free rate for a firm with a required return of 15.686% and a beta of 0.83 when the market return is 17%. c. Find the market return for an asset with a required return of 17.629% and a beta of 1.47 when the risk-free rate is 10%. d. Find the beta for an asset with a required return of 11.900% when the risk-free rate and market return are 7% and 9.8%, respectively. a. The required return for an asset with a beta of 0.42 when the risk-free rate and market return are 8% and 12%, respectively, is 9.68 %. (Round to two decimal places.) b. The risk-free rate for a firm with a required return of 15.686% and a beta of 0.83 when the market return is 17% is 9.27 %. (Round to two decimal places.) c. The market return for an asset with a required return of 17.629% and a beta of 1.47 when the risk-free rate is 10% is 15.19 %. (Round to two decimal places.) d. The beta for an asset with a required return of 11.900% when the risk-free rate and market return are 7% and 9.8%, respectively, is (Round to two decimal places.)
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