Question: Use the required return-beta equation from the CAPM: 1) What is the required return for a stock if the risk-free rate is 1%, beta 1.2

Use the required return-beta equation from the CAPM:

1) What is the required return for a stock if the risk-free rate is 1%, beta 1.2 and the required return for the market portfolio is 7%?

2) What is the risk-free rate if beta is 1.1, the required return 7.35% and the required return for the market portfolio is 7%?

3) What is beta if the risk-free rate is 1%, the required return 12% and the required return for the market is 7%?

4) What is the required return for the market if the risk-free rate is 1%, beta 1.2 and the required return 12%?

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