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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 percent,
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 percent, and the expected retum for the market is 14.5 percent. What should be the expected rate of return for each investment (using the CAPM)? Security Beta A 1.55 B 0.92 0.74 1.25 (Click on the icon in order to copy its contents into a spreadsheet.) C a. The expected rate of return for security A, which has beta of 1.55, is %. (Round to two decimal places.) Enter your answer in the answer box and then click Check Answer. ? 3 parts remaining Clear All Check
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