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(Capital asset pricing model)Anita, Inc. is considering the following investments. The current rate on Treasury bills is 7 percent, and the expected return for the

(Capital asset pricing model)Anita, Inc. is considering the following investments. The current rate on Treasury bills is

7

percent, and the expected return for the market is

10.5

percent. Using the CAPM, what rates of return should Anita require for each individual security?

Stock

Beta

H

0.75

T

1.72

P

0.85

W

1.31

a.The expected rate of return for security H, which has a beta of

0.75,

is

nothing%.

(Round to two decimal places.)b.The expected rate of return for security T, which has a beta of

1.72,

is

nothing%.

(Round to two decimal places.)c.The expected rate of return for security P, which has a beta of

0.85,

is

nothing%.

(Round to two decimal places.)d. The expected rate of return for security W, which has a beta of

1.31,

is

nothing%.

(Round to two decimal places.)

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