(Capital Asset Pricing Model) The expected return for the general market is 13.0 percent, and the risk premium in the market is 9.3 percent. Tasaco, LBM, and Exxos have betas of 0.895, 0.602, and 0.518, respectively. What are the appropriate expected rates of return for the three securities? The appropriate expected return of Tasaco is %. (Round to two decimal places.)

(Capital Asset Pricing Model) The expected return for the general market is 13.0 percent, and the risk premium in the market is 9.3 percent. Tasaco, LBM, and Exxos have betas of 0.895, 0.602, and 0.518, respectively. What are the appropriate expected rates of return for the three securities? The appropriate expected return of Tasaco is %. (Round to two decimal places.)

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter8: Analysis Of Risk And Return

Section: Chapter Questions

Problem 7P

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(Capital Asset Pricing Model) The expected return for the general market is 13.0 percent, and the risk premium in the market is 9.5 percent. Tasaco, LBM, and Exxos have betas of 0.842, 0.689, and 0.547, respectively. What are the appropriate expected rates of return for the three securities? The appropriate expected return of Tasaco is %. (Round to two decimal places.) The appropriate expected return of LBM is%. (Round to two decimal places.) The appropriate expected return of Exxos is%. (Round to two decimal places.) 2 *** W S X ommand # m 3 SO P3 E D $ 4 C 990 GOD F4 R F % es 5 V FS T G 6 MacBook Air B F6 Y Question Viewer & 8 r 7 H ( 44 F7 U N * 8 J D-11 FR M ( 9 K MOSISO 19 O 1 command : . ; 4 + I = " ? option 40 VYZ { J DI ( Next . 1 "A and Me dele re
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