8. The returns on the market, the returns on United Fund (UF), the risk-free rate, and the required return on the United Fund are shown below. Year Market UF 2003 -9% -14% 2004 11% 16% 2005 15% 22% 2006 5% 7% 2007 -1% -2% rRF: 7.00% rUnited: 15.00% Assuming the market is in equilibrium and that beta can be estimated with historical data, a. Estimate beta of United fund b. Estimate the market risk premium c. What is the required return on the market, rM?
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