Player (Capital Asset Pricing Model) Johnson Manufacturing, Inc., is considering several investments. The rate on Treasury bills is currently 6.
Player (Capital Asset Pricing Model)
Johnson Manufacturing, Inc., is considering several investments. The rate on Treasury bills is currently 6.5 percent, and the expected return for the market is 12.5 percent. What should be the expected rate of return for each investment (using the CAPM)?
| Security | Beta | Copy to Clipboard+Open in Excel+ |
| A | 1.811.81 | |
| B | 0.880.88 | |
| C | 0.550.55 | |
| D | 1.441.44 |