# Question

Johnson Manufacturing, Inc., is considering several investments. The rate on Treasury bills is currently 4 percent, and the expected return for the market is 10 percent. What should be the the expected rates of return for each investment (using the CAPM)?

Security Beta

A ........... 1.50

B ........... .82

C ........... .60

D ........... 1.15

Security Beta

A ........... 1.50

B ........... .82

C ........... .60

D ........... 1.15

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