(Capital asset pricing model) Anita, Inc. is considering the following investments. The current rate on Treasury bills is 8.5 percent, and the expected return for the market is 15 percent. Using the CAPM, what rates of return should Anita require for each individual security? Stock Beta H 0.89 T P W 1.54 0.85 1.23 (Click on the icon in order to copy its contents into a spreadsheet) a. The expected rate of return for security H, which has a beta of 0.89, is b. The expected rate of return for security T, which has a beta of 1.54, is c. The expected rate of return for security P, which has a beta of 0.85, is d. The expected rate of return for security W, which has a beta of 1.23, is %. (Round to two decimal places.) %. (Round to two decimal places.) %. (Round to two decimal places.) %. (Round to two decimal places.)
(Capital asset pricing model) Anita, Inc. is considering the following investments. The current rate on Treasury bills is 8.5 percent, and the expected return for the market is 15 percent. Using the CAPM, what rates of return should Anita require for each individual security? Stock Beta H 0.89 T P W 1.54 0.85 1.23 (Click on the icon in order to copy its contents into a spreadsheet) a. The expected rate of return for security H, which has a beta of 0.89, is b. The expected rate of return for security T, which has a beta of 1.54, is c. The expected rate of return for security P, which has a beta of 0.85, is d. The expected rate of return for security W, which has a beta of 1.23, is %. (Round to two decimal places.) %. (Round to two decimal places.) %. (Round to two decimal places.) %. (Round to two decimal places.)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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quiz 8-16
Transcribed Image Text:(Capital asset pricing model) Anita, Inc. is considering the following investments. The current rate on Treasury bills is 8.5 percent, and the expected return for the market is 15 percent. Using the CAPM, what rates of return should Anita require for each individual security?
Stock
Beta
H
0.89
T
P
W
1.54
0.85
1.23
(Click on the icon in order to copy its contents into a spreadsheet)
a. The expected rate of return for security H, which has a beta of 0.89, is
b. The expected rate of return for security T, which has a beta of 1.54, is
c. The expected rate of return for security P, which has a beta of 0.85, is
d. The expected rate of return for security W, which has a beta of 1.23, is
%. (Round to two decimal places.)
%. (Round to two decimal places.)
%. (Round to two decimal places.)
%. (Round to two decimal places.)
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