Capital asset pricing model

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(Capital Asset Pricing Model)

Johnson Manufacturing, Inc., is considering several investments. The rate on Treasury bills is currently 7 percent, and the expected return for the market is 11.5 percent. What should be the expected rate of return for each investment (using the CAPM)? Security Beta 1.71 B 0.89 0.58 1.18 (Click on the icon [ in order to copy its contents into a spreadsheet.) a. The expected rate of return for security A, which has a beta of 1.71, is %. (Round to two decimal places.)

Reference no: EM133112488

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