The expected return for the general market is 130 and the


The expected return for the general market is 13.0%, and the risk premium in the market is 8.7%. Tasaco, LBM, and Exxos have betas of 0.818, 0.629, and 0.548, 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 130 and the
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