Use the basic equation for the capital asset pricing model

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Reference no: EM13923039

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 0.77 when the risk-free rate and market return are 7% and 15%, respectively.

b. Find the risk-free rate for a firm with a required return of 6.245% and a beta of .59 when the market return is 8%.

c. Find the market return for an asset with a required return of 7.627% and a beta of .26 when the risk -free rate is 7%

d. Find the beta for an asset with a required return of 11.972%. when the risk free rate and market return are 10% and 12.9% respectively.

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Reference no: EM13923039

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