Question: (Using the CAPM to find expected returns) Kumar and Harold Investments Ltd. is considering a number of investments proposals, listed in the table below. Assume

(Using the CAPM to find expected returns) Kumar and Harold Investments Ltd. is considering a number of investments proposals, listed in the table below. Assume that the rate on Treasury bills is currently 5 percent, and the expected return for the market portfolio is 8 percent. What should be the expected rate of return for each investment (using the CAPM)?

Security Beta A 1.82 B 1.23 C .97 D .50

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