solution

The expected return for the general market is 15.6 ?percent, and the risk premium in the market is 8.8 percent.? Tasaco, LBM, and Exxos have betas of 0.874?, 0.657?, and 0.577, respectively. What are the corresponding required rates of return for the three? securities?

a. Using the? CAPM, the corresponding required rate of return for Tasaco is _________% (Assume % and round to two decimal? places.)

b. Using the? CAPM, the corresponding required rate of return for LBM is ______%. (Assume % and round to two decimal? places.)

c. Using the? CAPM, the corresponding required rate of return for Exxos is _______%. ?(Assume % and round to two decimal? places.)

 
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