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

0.27when the risk-free rate and market return are

9%and 12%,

respectively.

b.Find the risk-free rate for a firm with a required return of 5.354%

and a beta of 0.33

when the market return is 8%.

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

14.769%

and a beta of

0.63

when the risk-free rate is

10%.

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

15.310%

when the risk-free rate and market return are

4%

and 11.8%,

respectively.