P8-16 (similar to) Question Help * (Using the CAPM to find expected returns) Sante Capital operates two mutual funds headquartered in Houston, Texas. The firm is evaluating the stock of four different firms for possible inclusion in its fund holdings. As part of their analysis, Sante's managers have asked their junior analyst to estimate the investor-required rate of return on each firm's shares using the CAPM and the tollowing estimates The rate of interest on short-term US Treasury securities is currently 4 5 percent and the expected return for the market porttolio is 12 5 percent. What should be the expected rates of return for each investment? Security Beta 175 061 1.29 0.87 15 a The expected rate of return for security A, which has a beta of 1 75, s[]% Round to two decimal places ) ( Enter Clear All ce 331 3 remaning ^ ch