Manipulating CAPM
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 1.64. when the? risk-free rate and market return are 5% and 8%?, respectively.
b. Find the ?risk-free rate for a firm with a required return of 19.247?% and a beta of 1.66when the market return is 14%.
c. Find the market return for an asset with a required return of 18.738% and a beta of 1.25 when the? risk-free rate is 9%.
d. Find the beta for an asset with a required return of 11.602?% when the? risk-free rate and market return are 7?% and 10.9%?, respectively.
(Round to two decimal? places.)