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The expected return for the general market is 12.6 percent, and the risk premium in the market is 6.5 percent. Tasaco, LBM, and Exxos have
The expected return for the general market is 12.6 percent, and the risk premium in the market is 6.5 percent. Tasaco, LBM, and Exxos have betas of
0.882, 0.602, and 0.507, respectively. What are the corresponding required rates of return for the three securities?
a. Using the CAPM, the corresponding required rate of return for Tasaco is
B. Using the CAPM, the corresponding required rate of return for LBM is
C. Using the CAPM, the corresponding required rate of return for Exxos is
(Round to two decimal places.)
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