(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.)
(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.)
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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Transcribed Image Text:(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.)
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