Question: Problem 3 Here are some stocks with high and low betas, as reported by the Value Line Investment Survey: High Beta Stocks Company Beta Low

Problem 3 Here are some stocks with high and low betas,

Problem 3 Here are some stocks with high and low betas, as reported by the Value Line Investment Survey: High Beta Stocks Company Beta Low Beta Stocks Company Beta Intel Ford Motor Delta Airlines US Steel 1.05 1.25 1.30 1.90 Procter & Gamble Wal-Mart AT&T Pfizer 0.65 0.70 0.75 0.90 Suppose that the risk-free rate is rf = 0.02 (2 percent) and that the expected return on the market portfolio is Elim) = 0.08 (8 percent), then use the CAPM to calculate the expected returns on each of these eight stocks

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