Current rate be on two-year treasury securities

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Reference no: EM131985206

1. CAPM Required Return A company has a beta of 1.10. If the market return is expected to be 11.5 percent and the risk-free rate is 3.75 percent, what is the company's required return?

16.03%

12.65%

12.28%

16.40%

2. Unbiased Expectations Theory One-year Treasury bills currently earn 5.70 percent. You expect that one year from now, one-year Treasury bill rates will increase to 5.95 percent. If the unbiased expectations theory is correct, what should the current rate be on two-year Treasury securities?

5.700%

11.650%

5.950%

5.825%

Reference no: EM131985206

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