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I need help with these questions (Capital Asset Pricing Model) Johnson Manufacturing, Inc., is considering several investments. The rate on Treasury bills is currently 8
I need help with these questions
(Capital Asset Pricing Model) Johnson Manufacturing, Inc., is considering several investments. The rate on Treasury bills is currently 8 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 1.83 0.96 0.54 1.41 (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 1.83, is%. (Round to two decimal places.) b. The expected rate of return for security B, which has a beta of 0.96, is%. (Round to two decimal places.) c. The expected rate of return for security C, which has a beta of 0.54, is%. (Round to two decimal places.) d. The expected rate of return for security D, which has a beta of 1.41, is %. (Round to two decimal places.) (Capital Asset Pricing Model) Breckenridge, Inc., has a beta of 0.98. If the expected market return is 11.0 percent and the risk-free rate is 6.0 percent, what is the appropriate expected return of Breckenridge (using the CAPM)? The appropriate expected return of Breckenridge is%. (Round to two decimal places.) Step by Step Solution
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