Capital asset pricing model the expected return for the


(Capital Asset Pricing Model) The expected return for the general market is 11.0 percent, and the risk premium in the market is 6.4 percent. Tasaco, LBM, and Exxos have betas of 0.831, 0.696, and 0.576, respectively. What are the appropriate expected rates of return for the three securities?

a. The appropriate expected return of Tasaco?

b. The appropriate expected return of LBM?

c. The appropriate expected return of Exxos?

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Financial Management: Capital asset pricing model the expected return for the
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