Question: ( Capital asset pricing model ) The expected return for the general market is 1 2 . 3 percent, and the risk premium in the
Capital asset pricing model The expected return for the general market is percent,
and the risk premium in the market is percent. Tasaco, LBM and Exxos have betas of
and respectively. What are the corresponding required rates of return
for the three securities
a Using the CAPM, the corresponding required rate of return for Tasaco is
Round to
two decimal places.
b Using the CAPM, the corresponding required rate of return for LBM is
Round to
two decimal places.
c Using the CAPM, the corresponding required rate of return for Exxos is
Round to
two decimal places.
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