Question: please answer all): (Using the CAPM to find expected returns) Sante Capital operates two mutual funds headquartered in Houston, Texas. The firm is evaluating the

(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 following estimates: The rate of interest on short-term U.S. Treasury securities is currently 3 percent, and the expected return for the market portfolio is 12 percent. What should be the expected rates of return for each investment? (Wick on the icon in order to copy its contents into a spreadsheet.) a. The expected rate of return for security A, which has a beta of 1.59 , is %. (Round to two decimal places.) (Computing the expected rate of return and risk) After a tumultuous period in the stock market, Logan Morgan is considering an investment in one of two portfolios. Given the information that follows, which investment is better, based on risk (as measured by the standard deviation) and return as measured by the expected rate of return? a. The expected rate of return for portiolio A is \%. (Round to two decimal places.) The standard deviation of portfolio A is \%. (Round to two decimal places.)
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