8-15. (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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I need simple formula with all the process

5. (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)? 5. (Computing the portfolio beta and plotting the security market line) 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. (Hint: The expected return of a portfolio equals the weighted average of the individual stocks' expected returns, where the weights are the percentage invested in each stock.) b. Calculate the portfolio beta