Question: Intro The table below shows information for 3 stocks. Security Beta Risk-free rate Expected market return 1.8 Stock 1 0.02 0.06 1.2 Stock 2 0.035

 Intro The table below shows information for 3 stocks. Security Beta
Risk-free rate Expected market return 1.8 Stock 1 0.02 0.06 1.2 Stock

Intro The table below shows information for 3 stocks. Security Beta Risk-free rate Expected market return 1.8 Stock 1 0.02 0.06 1.2 Stock 2 0.035 0.06 Stock 3 0.4 0.015 0.06 The risk-free rates are different because they were measured in different years. Calculate the expected (or required) return for each stock, using the Capital Asset Pricing Model (CAPM). Part 1 B Attempt 1/5 for 10 pts. What is the expected return for stock 1? 3+ decimals Submit Part 2 B Attempt 1/5 for 10 pts. What is the expected return for stock 2? 3+ decimals Submit Part 3 What is the expected return for stock 3? 4+ decimals Submit About esc F1 F2 F3 F4

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