Question: (Capital asset pricing model) The expected return for the general market is 11.2 percent, and the risk premium in the market is 4.8 percent. Tasaco,
(Capital asset pricing model) The expected return for the general market is 11.2 percent, and the risk premium in the market is 4.8 percent. Tasaco, LBM, and Exxos have betas of 0.801, 0.667, and 0.574, respectively. What are the corresponding required rates of return for the three securities?
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