Question
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 10.5
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 10.5 percent. What should be the expected rate of return for each investment (using the CAPM)?
| Security | Beta |
|---|---|
| A | 1.62 |
| B | 1.04 |
| C | 0.68 |
| D | 1.38 |
a.The expected rate of return for security A, which has a beta of 1.62, is enter your response here%. (Round to two decimal places.)
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A Guide To Starting Your Hedge Fund
Authors: John Thompson, Erik Serrano Berntsen
1st Edition
0470519401, 978-0470519400
