Question: The expected return for the general market is 10.3 percent, and the risk premium in the market is 5.3 percent. Tasaco, LBM, and Exxos have

The expected return for the general market is 10.3 percent, and the risk premium in the market is 5.3 percent. Tasaco, LBM, and Exxos have betas of .864, .693, and .575, respectively. What are the appropriate expected rates of return for the three securities?

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