Question: Intro The table below shows information for 3 stocks. Security Beta Stock 1 1.9 Stock 2 1.2 Stock 3 0.4 The risk-free rate is 1.5%

Intro

The table below shows information for 3 stocks.

Security	Beta
Stock 1	1.9
Stock 2	1.2
Stock 3	0.4

The risk-free rate is 1.5% and the required return for the market portfolio is 13%. Calculate the required return for each stock, using the Capital Asset Pricing Model (CAPM).

Part 1

What is the required return for stock 1?

Part 2

What is the required return for stock 2?

Part 3

What is the required return for stock 3?

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