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(Capital Asset Pricing Model) Johnson Manufacturing, Inc., is considering several investments. The rate on Treasury bills is currently 5 percent, and the expected return for
(Capital Asset Pricing Model) Johnson Manufacturing, Inc., is considering several investments. The rate on Treasury bills is currently 5 percent, and the expected return for the market is 13 percent. What should be the expected rate of return for each investment (using the CAPM)? Security Beta A 1.79 B 1.08 C 0.61 D 1.38 (Click on the icon in order to copy its contents into a spreadsheet.) ... a. The expected rate of return for security A, which has a beta of 1.79, is %. (Round to two decimal places.) b. The expected rate of return for security B, which has a beta of 1.08, is %. (Round to two decimal places.) C. The expected rate of return for security C, which has a beta of 0.61, is %. (Round to two decimal places.) d. The expected rate of return for security D, which has a beta of 1.38, is %. (Round to two decimal places.)
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