(Capital asset pricing model) The expected return for the general market is 11.7 percent, and the...
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(Capital asset pricing model) The expected return for the general market is 11.7 percent, and the risk premium in the market is 6.3 percent. Tasaco, LBM, and Exxos have betas of 0.868, 0.658, and 0.589, respectively. What are the corresponding required rates of return for the three securities? -C a. Using the CAPM, the corresponding required rate of return for Tasaco is %. (Round to two decimal places.) (Capital asset pricing model) The expected return for the general market is 11.7 percent, and the risk premium in the market is 6.3 percent. Tasaco, LBM, and Exxos have betas of 0.868, 0.658, and 0.589, respectively. What are the corresponding required rates of return for the three securities? -C a. Using the CAPM, the corresponding required rate of return for Tasaco is %. (Round to two decimal places.)
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Foundations of Finance The Logic and Practice of Financial Management
ISBN: 978-0132994873
8th edition
Authors: Arthur J. Keown, John D. Martin, J. William Petty
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