Homework: Homework 8 Save Score: 0 of 10 pts 5 of 5 (0 complete) HW Score: 0%, 0 of 50 pts P8-15 (similar to) Question Help (Capital Asset Pricing Model) Johnson Manufacturing, Inc., is considering several investments. The rate on Treasury bills is currently 5.5 percent, and the expected return for the market is 13 percent. What should be the expected rate of return for each investment (using the CAPM)? Security Beta 1.66 0.81 0.74 1.36 (Click on the icon in order to copy its contents into a spreadsheet.) a. The expected rate of return for security A, which has a beta of 1.66, is %. (Round to wo decimal places.) FIN 3310 Business Finance Rodolfo Velasquez & 06/30/21 9:54 PM Homework: Homework 8 Save Score: 0 of 10 pts 4 of 5 (0 complete) HW Score: 0%, of 50 pts P8-14 (similar to) Question Help (Expected rate of return using CAPM) a. Compute the expected rate of return for Acer common stock, which has a 1.5 beta. The risk-free rate is 7 percent and the market portfolio (composed of New York Stock Exchange stocks) has an expected return of 14 percent. b. Why is the rate you computed the expected rate? a. The expected rate of return for Acer common stock is % (Round to one decimal place)