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Douglas Keel, a financial analyst for Orange Industries, wishes to estimate the rate of return for two similar-risk investments, X and Y. Douglas’s research indicates that the immediate past returns will serve as reasonable estimates of future returns. A year earlier, investment X had a market value of $27.000; and investment Y had a market value of $64,000. During the year, Investment generated cash flow of $2,025 and investment Y generated cash flow of $ 7,327. The current market values of investments X and Y are $27.781 and $64.000, respectively 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.lf 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? C.How does risk affect the required return on an asset? How does it affect the value of the asset?