# Question: The expected return for the general market is 10 3 percent and

The expected return for the general market is 10.3 percent, and the risk premium in the market is 5.3 percent. Tasaco, LBM, and Exxos have betas of .864, .693, and .575, respectively. What are the appropriate expected rates of return for the three securities?

**View Solution:**## Answer to relevant Questions

You own a portfolio consisting of the following stocks:The risk-free rate is 3 percent. Also, the expected return on the market portfolio is 10.5 percent.a. Calculate the expected return of your portfolio. b. Calculate the ...You own a portfolio consisting of the following stocks:The risk-free rate is 4 percent. Also, the expected return on the market portfolio is 10 percent.a. Calculate the expected return of your portfolio. b. Calculate the ...Enterprise, Inc. bonds have a 9 percent annual coupon rate. The interest is paid semiannually and the bonds mature in eight years. Their par value is $1,000. If the market’s required yield to maturity on a comparable-risk ...A 14-year, $1,000 par value Fingen bond pays 9 percent interest annually. The market price of the bond is $1,100 and the market’s required yield to maturity on a comparable-risk bond is 10 percent.a. Compute the bond’s ...Stanley, Inc. issues a 15-year $1,000 bond that pays $85 annually. The market price for the bond is $960. The market’s required yield to maturity on a comparable-risk bond is 9 percent.a. What is the value of the bond to ...Post your question