Answer Happy

 1.  ​
  ​Breckenridge, Inc., has a beta of
0.89.
If the expected market return is
11.5
percent and the​ risk-free rate is
7.0
​percent, what is the appropriate expected return of
Breckenridge​ (using the​ CAPM)?
2.
 ​CSB, Inc. has a beta of
0.943.
If the expected market return is
10.5
percent and the​ risk-free rate is
6.5
​percent, what is the appropriate expected return of CSB​ (using
the​ CAPM)?
3.
The expected return for the general market is
12.5
​percent, and the risk premium in the market is
8.6
percent. ​ Tasaco, LBM, and Exxos have betas of
0.854​,
0.659​,
and
0.536​,
respectively. What are the appropriate expected rates of return
for the three​ securities?