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Company Beta Quorum Health Group 0.90 Beverly Enterprises 1.20 HEALTHSOUTH Corporation 1.45 United Healthcare 1.

Company Beta
Quorum Health Group 0.90
Beverly Enterprises 1.20
HEALTHSOUTH Corporation 1.45
United Healthcare 1.70

At the time these betas were developed, reasonable estimates for the risk free rate, RF, and required rate of return on the market, R(RM), were 6.5 percent and 13.5 percent, respectively.

a. What are the required rates of return on the four stocks?

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CH050510_506717_FIN.doc

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Company Beta
Quorum Health Group 0.90
Beverly Enterprises 1.20
HEALTHSOUTH Corporation 1.45
United Healthcare 1.70
At the time these betas were developed,...

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