Question
JohnsonManufacturing, Inc., is considering several investments. The rate on Treasury bills is currently 5 percent, and the expected return for the market is 11.5 percent.
JohnsonManufacturing, Inc., is considering several investments. The rate on Treasury bills is currently 5 percent, and the expected return for the market is 11.5 percent. What should be the expected rate of return for each investment(using theCAPM)?
| Security | Beta |
| A | 1.54 |
| B | 0.81 |
| C | 0.65 |
| D | 1.26 |
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Venture Capital And The Finance Of Innovation
Authors: Andrew Metrick
1st Edition
0470074280, 9780470074282
