​(Capital Asset Pricing​ Model)  Johnson​ Manufacturing, Inc., is considering several investments. The rate on Treasury

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answerhappygod
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​(Capital Asset Pricing​ Model)  Johnson​ Manufacturing, Inc., is considering several investments. The rate on Treasury

Post by answerhappygod »

​(Capital Asset
Pricing​ Model)  Johnson​ Manufacturing, Inc., is
considering several investments. The rate on Treasury bills is
currently
6
​percent, and the expected return for the market is
10
percent. What should be the expected rate of return for each
investment​ (using the​ CAPM)?
Security
Beta
A
1.66
B
1.02
C
0.66
D
1.35
Expected return on A, B, C and D.
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