Question: (Capital asset pricing model) The expected return for the general market is 15.9 percent, and the risk premium in the market is 10.4 percent. Tasaco,
(Capital asset pricing model) The expected return for the general market is 15.9 percent, and the risk premium in the market is 10.4 percent. Tasaco, LBM, and Exxos have betas of 0.876, 0.618, and 0.534, respectively. What are the corresponding required rates of return for the three securities? %. (Round to two a. Using the CAPM, the corresponding required rate of return for Tasaco is 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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