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The expected return for the general market is 11.5 percent, and the risk premium in the market is 6.7 percent. Tasaco, LBM, and Exxos have
The expected return for the general market is 11.5 percent, and the risk premium in the market is 6.7 percent. Tasaco, LBM, and Exxos have betas of 0.841 ,0.662 and ,0.566 respectively. What are the appropriate expected rates of return for the three securities?
Part 1
The appropriate expected return of Tasaco is_____% (Round to two decimal places.)
The appropriate expected return of LBM is ______%. (Round to two decimal places.)
The appropriate expected return of Exxos is ______%. (Round to two decimal places.)
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