The expected return for the general market is 13 percent


The expected return for the general market is 13 percent, and the risk premium in the market is 9.1 percent. Tasaco, LBM, and Exxos have betas of 0.824, 0.652, and 0.549, respectively. What are the appropriate expected rates of return for the three securities?

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Financial Management: The expected return for the general market is 13 percent
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