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(Capital Asset Pricing Model) Johnson Manufacturing, Inc., is considering several investments. The rate on Treasury bills is currently 6.5 percent, and the expected return
(Capital Asset Pricing Model) Johnson Manufacturing, Inc., is considering several investments. The rate on Treasury bills is currently 6.5 percent, and the expected return for the market is 15 percent. What should be the expected rate of return for each investment (using the CAPM)? a. The expected rate of return for security A, which has a beta of 1.64, is b. The expected rate of return for security B, which has a beta of 0.93, is c. The expected rate of return for security C, which has a beta of 0.78, is d. The expected rate of return for security D, which has a beta of 1.29, is %. (Round to two decimal places.) %. (Round to two decimal places.) %. (Round to two decimal places.) %. (Round to two decimal places.)
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