Question: Using the CAPM, estimate the appropriate required rate of return for the three stocks listed here, given that the risk-free rate is 5 percent and

Using the CAPM, estimate the appropriate required rate of return for the three stocks listed here, given that the risk-free rate is 5 percent and the expected return for the market is 12 percent.

STOCK _____________BETA

A ............................... 0.75

B ............................... 0.90

C ............................... 1.40

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