Use the basic equation for the capital asset pricing model


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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Operation Management: Use the basic equation for the capital asset pricing model
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