A few years ago, the Value Line Investment survey reported the following market betas for the stocks

Question:

A few years ago, the Value Line Investment survey reported the following market betas for the of selected healthcare providers:
Company - Beta
Quorum Health Group 0.90
Beverly Enterprises 1.20
Health South 1.45
United Healthcare 1.70 at the time these betas were developed, reasonable estimates for the risk-free rate, RF, and required rate of return on the market, R (Rm), were 6.5% and 13.5 % respectively.
(a) What are the required rates of return on the four Why do their required rates of returen differ?
(c) Suppose that a person is planning to invest in only one stock rather than a well-diversified stock portfolio. Are the required rates of return calculated above applicable to the investment? Explain your answer
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