Question
Assume the risk-free rate is 7.2% and the expected return on the market portfolio is 9.3%. Use the capital asset pricing model (CAPM) to find
Assume the risk-free rate is 7.2% and the expected return on the market portfolio is 9.3%. Use the capital asset pricing model (CAPM) to find the required return for each of the securities in the table here
Beta A 1.26 B 0.97 C 0.21 D 1.07 E 0.65
The required return for investment A is _______%. (Round to one decimal place.)
The required return for investment B is ______% (Round to one decimal place.)
The required return for investment C is ______%. (Round to one decimal place.)
The required return for investment D is _______% (Round to one decimal place.)
The required return for investment E is _______%.(Round to one decimal place.)
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