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Anita, Inc. is considering the following investments. The current rate on Treasury bills is 7.5 percent, and the expected return for the market is 15

Anita, Inc. is considering the following investments. The current rate on Treasury bills is

7.5

percent, and the expected return for the market is

15

percent. Using theCAPM, what rates of return should Anita require for each individual security?

Stock Beta
H 0.93
T 1.47
P 0.98
W 1.15

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Part 1

a.The expected rate of return for security H, which has a beta of

0.93,

is

enter your response here%.

(Round to two decimal places.)

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