Question: (Using the CAPM to find expected returns) Marsha is considering four different investments to include in his portfolio. The current rate on Treasury bills is

(Using the CAPM to find expected returns) Marsha is considering four different investments to include in his portfolio. The current rate on Treasury bills is 4 percent, and the expected return for the market portfolio is 10 percent. Using the CAPM, what rate of return should Marsha require for each individual security?

Stock Beta W 0.85 X 1.6 Y 0.48 Z 1.20

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