The following data have been developed for the Milliken Company:

The yield to maturity on Treasury bills is .066 and is expected to remain at this point for the foreseeable future. Calculate the following:
(a) The expected market return.
(b) The variance of the market return.
(c) The expected rate of return for the Milliken Company.
(d) The covariance of the return for the Milliken Company with the return on the market.
(e) Write the equation of the security market line.
(f) What is the required return for the Milliken Company?

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Year Market Return Company Returns 1978 1977 1976 03 1975 1974 -03 1973 12 12 27 .30