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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 6.5 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 6.5 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 1.61 1.03 0.46 1.39 a. The expected rate of return for security A, which has a beta of 1:61, is %. (Round to two decimal places.)
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