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The table below shows information for 3 stocks. Security Beta Stock 1 1.7 Stock 2 1.2 Stock 3 0.6 The risk-free rate is 2% and

The table below shows information for 3 stocks.

Security Beta
Stock 1 1.7
Stock 2 1.2
Stock 3 0.6

The risk-free rate is 2% and the required return for the market portfolio is 6%. Calculate the required return for each stock, using the Capital Asset Pricing Model (CAPM).

Attempt 1/5 for 10 pts.

Part 1

What is the required return for stock 1?

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Attempt 1/5 for 10 pts.

Part 2

What is the required return for stock 2?

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Attempt 1/5 for 10 pts.

Part 3

What is the required return for stock 3?

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