Using the capm what is the required rate of return for, Financial Management

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Using the capm what is the required rate of return for

1. The risk-free rate is equal to 3 percent and the expected market return is 8 percent. Pluto has a beta of 1.20 and inflation has averaged 1 percent over the last 5 years. Using the CAPM, what is the required rate of return for Pluto Corp?

a. 10% b. 9%

c. 8% d. 7%

2. The risk-free rate is equal to 3 percent and the market risk premium is 8 percent. Saturn has a beta of 0.75 and inflation has averaged 1 percent over the last 5 years. Using the CAPM, what is the required rate of return for Saturn Corp?

a. 6.75% b. 7.75%

c. 9.00% d. 10.00%

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