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The following information is related to securities X and Y : Rf-5% Security Standard Deviation Estimated Betas Forecasted Return X 10%18% Y 8 % 20

The following information is related to securities X and Y : Rf-5\% Security Standard Deviation Estimated Betas Forecasted Return X 10\%18\% Y 8 % 20 % 8 % 0.8 0.5 1.00 Market 15 % A. Based on the capital asset pricing model CAPM , calculate the required rate of return for securities X and Y.

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