Question: Use the required return-beta equation from the CAPM. 1. What is the required return if the risk-free rate is 3%, beta 1.5 and the required
Use the required return-beta equation from the CAPM.
1. What is the required return if the risk-free rate is 3%, beta 1.5 and the required return for the market portfolio is 8%?
2. What is the risk-free rate if beta is 1.1, the required return 8.4% and the required return for the market portfolio is 8%?
3. What is beta if the risk-free rate is 3%, the required return 10% and the required return for the market is 8%?
4. What is the required return for the market if the risk-free rate is 3%, beta 1.5 and the required return 10%?
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