Page 1 of 1

a.  Calculate the required rate of return for an asset that has a beta of ​1.80, given a​ risk-free rate of ​5.0% and a

Posted: Wed Mar 30, 2022 3:38 pm
by answerhappygod
a.  Calculate the required rate of return for an asset that has
a beta of ​1.80, given a​ risk-free rate of ​5.0% and a market
return of ​10.0%.
b.  If investors have become more​ risk-averse due to recent
geopolitical​ events, and the market return rises to ​13.0%, what
is the required rate of return for the same​ asset?
a. The required rate of return for the asset is: ​%.
​(Round to two decimal​ places.)
b.  If investors have become more​ risk-averse due to recent
geopolitical​ events, and the market return rises to ​13.0%, the
required rate of return for the same asset is: ​%. ​(Round to
two decimal​ places.)