Question: Use the basic equation for the capital asset pricing model (CAPM) to: 1.Find the risk-free rate for a firm with a required return of 15%

Use the basic equation for the capital asset pricing model (CAPM) to:

1.Find the risk-free rate for a firm with a required return of 15% and a beta of 1.25 when the market return is 14%.

2.Find the market return for an asset with a required return of 16% and a beta of 1.10 when the risk-free rate is 9%.

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