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(Capital Asset Pricing Model)Johnson Manufacturing, Inc., is considering several investments. The rate on Treasury bills is currently 7 percent, and the expected return for the
(Capital Asset Pricing Model)Johnson Manufacturing, Inc., is considering several investments. The rate on Treasury bills is currently 7 percent, and the expected return for the market is 14.5 percent. What should be the expected rate of return for each investment (using the CAPM)? Security Beta A 1.73 B 1.06 C 0.69 D 1.16 (Click on the icon in order to copy its contents into a spreadsheet.) Question content area bottom Part 1 a.The expected rate of return for security A, which has a beta of 1.73
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