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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 the

(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 10 percent. What should be the expected rate of return for each investment (using the CAPM)?

Security

Beta

A

1.57

B

0.96

C

0.66

D

1.43

a.The expected rate of return for security A, which has a beta of 1.57, is _____ %.

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