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CFA Level 1
Portfolio Management

CAPM Required Return Calculation

Very Easy Portfolio Risk And Return Capital Asset Pricing Model

In the context of the Capital Asset Pricing Model (CAPM), consider the required return on an asset that has a beta of 1.2. The risk-free rate is 3%, and the expected market return is 8%. According to CAPM, what is the required return for this asset?

Hint

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