Question: (Capital asset pricing model) The expected return for the general market is 10.3 percent, and the risk premium in the market is 5.3 percent. Tasaco,
(Capital asset pricing model) 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?
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