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Intro The table below shows information for 3 stocks. Security Beta Risk-free rate Expected market return Stock 1 1.9 0.02 0.04 Stock 2 1.2 0.035
Intro The table below shows information for 3 stocks. Security Beta Risk-free rate Expected market return Stock 1 1.9 0.02 0.04 Stock 2 1.2 0.035 0.04 Stock 3 0.7 0.015 0.04 The risk-free rates are different because they were measured in different years. Calculate the expected (or required) return for each stock, using the Capital Asset Pricing Model (CAPM). IB Attempt 1/5 for 10 pts. Part 1 What is the required return for stock 1? 3+ decimals Submit IB | Attempt 1/5 for 10 pts. Part 2 What is the required return for stock 2? 4+ decimals Submit IB Attempt 1/5 for 10 pts. Part 3 What is the required return for stock 3? 4+ decimals Submit
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