Required Rate of Return and Beta. Moe Corporation is considering several securities. The rate on Treasury bills is currently 8.25 percent, and the expected return for the market is 11.5 percent.
What should be the required rates of return for each security?
|
Security
|
Beta
|
|
A
|
1.15
|
|
B
|
0.85
|
|
C
|
1.00
|
|
D
|
1.50
|