Question

Johnson​ Manufacturing, Inc., is considering several investments. The rate on Treasury bills is currently 5.5 percent,...

Johnson​ Manufacturing, Inc., is considering several investments. The rate on Treasury bills is currently

5.5 percent, and the expected return for the market is 13.5 percent. What should be the expected rate of return for each investment​ (using the​ CAPM)?

Security

Beta

A

1.82

B

0.84

C

0.63

D

1.42

a.  The expected rate of return for security​ A, which has a beta of 1.82​, is ______​%. (Round to two decimal​ places.)

What is the expected rate of return for EACH investment?

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