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An analyst gives you the following estimates on betas and expected returns for three biotech stocks that she tracks: StockBetaExpected Return LBT5 Inc.0.812.4% SamSam Ltd.1.420.2%

An analyst gives you the following estimates on betas and expected returns for three biotech stocks that she tracks:

StockBetaExpected Return

LBT5 Inc.0.812.4%

SamSam Ltd.1.420.2%

Dee Money Inc.1.830.8%

The analyst tells you that she used the CAPM to estimate the expected returns. Is that possible?

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