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( Capital asset pricing model ) The expected return for the general market is 1 2 . 3 percent, and the risk premium in the

(Capital asset pricing model) The expected return for the general market is 12.3 percent,
and the risk premium in the market is 6.8 percent. Tasaco, LBM, and Exxos have betas of
0.889,0.665, and 0.559, respectively. What are the corresponding required rates of return
for the three securities?
a. Using the CAPM, the corresponding required rate of return for Tasaco is
%.(Round to
two decimal places.)
b. Using the CAPM, the corresponding required rate of return for LBM is
%.(Round to
two decimal places.)
c. Using the CAPM, the corresponding required rate of return for Exxos is
%.(Round to
two decimal places.)
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