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12. (Capital Asset Pricing Model) The expected return for the general market is 12.5 percent, and the risk premium in the market is 8.6 percent.

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12. (Capital Asset Pricing Model) The expected return for the general market is 12.5 percent, and the risk premium in the market is 8.6 percent. Tasaco, LBM, and Exxos have betas of 0.861,0.686, and 0.504, respectively. What are the appropriate expected rates of return for the three securities? The appropriate expected return of Tasaco is (Round to two decimal places.) The appropriate expected return of LBM is (Round to two decimal places.) The appropriate expected return of Exxos is (Round to two decimal places.)

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