Question: Intro The table below shows information for 3 stocks. Security Beta Risk-free rate Expected market return Stock 1 1.1 0.02 0.07 Stock 2 1.2 0.035

 Intro The table below shows information for 3 stocks. Security Beta
Risk-free rate Expected market return Stock 1 1.1 0.02 0.07 Stock 2

Intro The table below shows information for 3 stocks. Security Beta Risk-free rate Expected market return Stock 1 1.1 0.02 0.07 Stock 2 1.2 0.035 0.07 Stock 3 0.4 0.015 0.07 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). IB Attempt 1/10 for 10 pts. Part 1 What is the expected return for stock 1? 3+ decimals Submit 8 Attempt 1/10 for 10 pts. Part 2 What is the expected return for stock 2? Submit IBM Attempt 1/10 for 10 pts. Part 2 What is the expected return for stock 2? 3+ decimals Submit IB Attempt 1/10 for 10 pts. Part 3 What is the expected return for stock 3? 4+ decimals Submit

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