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E(rCSB)=5.5%+0.815[13.0%5.5%]=11.61% STEP 4: Analyze The appropriate expected retum of CSB is 11.61%. 11. (Capital Asset Pricing Model) The expected return for the general market is

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E(rCSB)=5.5%+0.815[13.0%5.5%]=11.61% STEP 4: Analyze The appropriate expected retum of CSB is 11.61%. 11. (Capital Asset Pricing Model) The expected return for the general market is 11.5 percent, and the risk premium in the market is 6.4 percent. Tasaco, LBM, and Exxos have betas of 0.802,0.602, and 0.547, respectively. What are the appropriate expected rates of return for the three securities? The appropriate expected return of Tasaco is (Round to two decimal places.)

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