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I need help on this problem due monday Oct. 12 for my MBA finance

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I need help on this problem due monday Oct. 12 for my MBA finance class. Please show me the formula to use and the math steps as I need to show my work in excel. Where do I find beta and required return detail? I am a bit lost. Thanks for your help. I [email protected]

C1. (Beta and required return) The riskless return is currently 6%, and Chicago Gear has estimated
the contingent returns given here.

a. Calculate the expected returns on the stock market and on Chicago Gear stock.
b. What is Chicago Gear’s beta?
c. What is Chicago Gear’s required return according to the CAPM?

State of the Market Probability that State Occurs Stock Market Chicago Gear
Stagnant 0.2 -10% -15%
Slow growth 0.3 10 15
Average growth 0.3 15 25
Rapid growth 0.15 25 35
Submitted: 7 years ago.
Category: Homework
Expert:  Linda_us replied 7 years ago.

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