Question: Stock Beta Current Price Expected Price Expected Dividend X 0.8 $12.50 $13.10 $0.80 Y 1.1 $ 8.25 $ 9.76 $0.20 Z 2.1 $25.70 $30.04 $0.00

Stock	Beta	Current Price	Expected Price	Expected Dividend
X	0.8	$12.50	$13.10	$0.80
Y	1.1	$ 8.25	$ 9.76	$0.20
Z	2.1	$25.70	$30.04	$0.00

Refer to Exhibit 7.4. If the expected return on the market is 11.5% and the risk-free rate of return is 4.5%, then what are the required rates of return for stocks X, Y, and Z based on the CAPM?

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