Use the CAPM to find the required return for asset X and Y.
 
 

Asset X: Year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Cash Flow $1,000 $1,500 $1,400 $1,700 $1,900 $1,600 $1,700 $2,000 $2,100 $2,200 Ending Value Price $22,000 $21,000 $24,000 $22,000 $23,000 $26,000 $25,000 $24,000 $27,000 $30,000 Beginning Value Price $20,000 $22,000 $21,000 $24,000 $22,000 $23,000 $26,000 $25,000 $24,000 $27,000 Cash Return for Asset X $3,000 $500 $4,400 ($300) $2,900 $4,600 $700 $1,000 $5,100 $5,200 Average Rate of return of X during the 10-year period =12% Rate of Return for Asset X 15% 2% 21% -1% 13% 20% 3% 4% 21% 19%