6-8B. (Capital asset pricing model) Bobbi Manufacturing, Inc., is considering several investments. The rate on Treasury bills

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6-8B. (Capital asset pricing model) Bobbi Manufacturing, Inc., is considering several investments.

The rate on Treasury bills is currently 6.75 percent, and the expected return for the market is 12 percent. What should be the required rates of return for each investment (using the CAPM)?

SECURITY BETA A 1.40 B .75 C .80 D 1.20

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Financial Management Principles And Applications

ISBN: 9780131450653

10th Edition

Authors: Arthur J. Keown, J. William Petty, John D. Martin, Jr. Scott, David F.

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