Question: ( Capital Asset Pricing Model ) Johnson Manufacturing, Inc., is considering several investments. The rate on Treasury bills is currently 5 . 5 percent, and
Capital Asset Pricing Model Johnson Manufacturing, Inc., is considering several
investments. The rate on Treasury bills is currently percent, and the expected return for
the market is percent. What should be the expected rate of return for each
investment using the CAPM
in order to copy its contents into a spreadsheet.
a The expected rate of return for security which has a beta of is
Round to
two decimal places.
b The expected rate of return for security which has a beta of is
Round to
two decimal places.
c The expected rate of return for security which has a beta of is
Round to
two decimal places.
d The expected rate of return for security which has a beta of is
Round to
two decimal places.
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