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(Capital asset pricing model)Anita, Inc. is considering the following investments. The current rate on Treasury bills is 6.5 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
6.5
percent, and the expected return for the market is
14
percent. Using the CAPM, what rates of return should Anita require for each individual security?
Stock | Beta |
---|---|
H | 0.83 |
T | 1.43 |
P | 0.97 |
W | 1.42 |
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