Question: Use the basic equation for the capital asset pricing model (CAPM) to work each of the following problems: 1) Find the required return for an
Use the basic equation for the capital asset pricing model (CAPM) to work each of the following problems:
1) Find the required return for an asset with a beta of 0.90 when the risk-free rate and market return are 8% and 12% respectivley
2) Find the risk-free rate for a firm with a required return of 15.000% and a beta of 1.25 when the market return is 14%
3) Find the market return for an asset with a required return of 15.996% and a beta of 1.10 when the risk free rate is 9%
4) Find the beta for an asset with a required return of 15.000% when the risk free rate and market return are 10% and 12.5% resepectively
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