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8-16 Bobbi Manufacturing is considering several investments. The rate on Treasury bills is currently 3.75%, and the expected return for the market is 10%. What
8-16 Bobbi Manufacturing is considering several investments. The rate on Treasury bills is
currently 3.75%, and the expected return for the market is 10%. What should be the expected
rates of return for each of the four investments with the following betas?
- Security A's beta:
1.40; Security B's beta: 0.75; Security C's beta: 0.80; Security D's beta: 1.20.
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