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(Capital asset pricing model) Anita, Inc. is considering the following investments. The current rate on Treasury bills is 8 percent, and the expected return for
(Capital asset pricing model) Anita, Inc. is considering the following investments. The current rate on Treasury bills is 8 percent, and the expected return for the market is 15 percent. Using the CAPM, what rates of return should Anita requir for each individual security? Stock H T P w Beta 0.82 1.61 0.97 1.25 a. The expected rate of return for security H, which has beta of 0.82, is%. (Round to two decimal places.) b. The expected rate of return for security T, which has a beta of 1.61, is %. (Round to two decimal places.) c. The expected rate of return for security P, which has a beta of 0.97, is %. (Round to two decimal places.) d. The expected rate of return for security W, which has a beta of 1.25, is %. (Round to two decimal places.)
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