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The Expected Rate of Return is and the Beta for each Please find the required rate of return on all 5 securities. Thank You. 5.
The Expected Rate of Return is and the Beta for each
Please find the required rate of return on all 5 securities. Thank You.
5. Using a 3.0\% risk-free rate, and a required rate of return on portfolio of 8.0%, calculate the required rates of return on each of the alternatives using the Security Market Line equation. =rRF+(rMrRF)bi \begin{tabular}{l|r|r|} \multicolumn{1}{|c|}{ Security } & Return & Risk (beta) \\ \hline High Tech & 9.90% & 1.31 \\ \hline Market & 8.00% & 1.00 \\ \hline U.S. Rubber & 7.30% & 0.88 \\ \hline T-bills & 3.00% & 0.00 \\ \hline Collections & 1.20% & (0.50) \\ \hline \end{tabular}Step by Step Solution
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