Manipulating capm-use basic equation for capital asset


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 0.90 when the? risk-free rate and market return are 8?% and 12 % respectively.

b. Find the ?risk-free rate for a firm with a required return of 15.000?% and a beta of 1.25 when the market return is 14%.

c. Find the market return for an asset with a required return of 15.996?% and a beta of 1.10 when the? risk-free rate is 9%.

d. Find the beta for an asset with a required return of 15.000?% when the? risk-free rate and market return are 10?% and 12.5%?, respectively.

a. The required return for an asset with a beta of 0.9when the? risk-free rate and market return are 8?% and 12%?, ?respectively, is _________%

?(Round to two decimal? places.)

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Financial Management: Manipulating capm-use basic equation for capital asset
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