Question: The table below shows information for 3 stocks. Security Beta Stock 1 1.6 Stock 2 1.2 Stock 3 0.6 The risk-free rate is 3.5% and

The table below shows information for 3 stocks.

Security	Beta
Stock 1	1.6
Stock 2	1.2
Stock 3	0.6

The risk-free rate is 3.5% and the required return for the market portfolio is 11%. Calculate the required return for each stock, using the Capital Asset Pricing Model (CAPM).

1. What is the required return for stock 1?

2. What is the required return for stock 2?

3. What is the required return for stock 3?

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