Capital-asset pricing model to predict the returns

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Use the capital-asset pricing model to predict the returns next year of the following stocks, if you expect the return to holding stocks to be 12 perect on average, and the interest rate on three-month T-bills will be two percent. Calculate a stock with a beta of -0.3, 0.7, and 1.6. Show your work for three separate calculations.

Reference no: EM13333822

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