The expected rate of return for Acer commen of traded off in the capital provides a theory of how risk and expected return are conned or trade markets. 8. (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 fi the market is 10.5 percent. What should be the expected rate of return for each investmen (using the CAPM)? a. The expected rate of return for security A, which has a beta of 1.66, is (Round to two decimal places.)