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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 1.22 when the? risk-free rate and market return are 6?% and 9%?, respectively.

b. Find the ?risk-free rate for a firm with a required return of 15.558?% and a beta of 0.93 when the market return is 16%.

c. Find the market return for an asset with a required return of 10.875?% and a beta of 1.84 when the? risk-free rate is 3%.

d. Find the beta for an asset with a required return of 14.032?% when the? risk-free rate and market return are 10?% and 17.2%?, respectively.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92758629

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