Intro

The table below shows information for 3 stocks.

Security	Beta
Stock 1	1.3
Stock 2	1.2
Stock 3	0.2

The risk-free rate is 3.5% and the expected return for the market portfolio is 6%. Calculate the expected return for each stock, using the Capital Asset Pricing Model (CAPM).

Attempt 1/50 for 10 pts.

Part 1

What is the expected return for stock 1?

3+ decimals

Submit

Attempt 1/50 for 10 pts.

Part 2

What is the expected return for stock 2?

3+ decimals

Submit

Attempt 1/50 for 10 pts.

Part 3

What is the expected return for stock 3?

4+ decimals