Johnson Manufacturing, Inc. is considering several investments. The rate on Treasury bills is currently 7.5% and the expected return for the market is 13%. What should be the expected rate of return for each investment (using the CAPM)?

Security Beta

A 1.73

B 0.91

C 0.72

D 1.25

a. The expected rate of return for Security A, which has a beta of 1.73. is ________%.

b. The expected rate of return for Security B, which has a beta of 0.91, is ______%.

c. The expected rate of return for security C, which has a beta of 0.72 is _____%.

d. The expected rate of return for security D, which has a beta of 1.25 is _____%.