Question: Chemy 1 Problem 7-4 (Algo) 90 pol Here are data on two companies. The Tbilates 4.8% and the market risk premium is 5.9% IN HET
Chemy 1 Problem 7-4 (Algo) 90 pol Here are data on two companies. The Tbilates 4.8% and the market risk premium is 5.9% IN HET Porest return 128 111 Standard deviation of return 128 141 Beta 1.6 3.0 Required: What would be the expected rate of return for each company, according to the capital asset pricing model CAPM? (Round your answers to 2 decimal places) elog Materace Expected Retum Company 51 Discount Store Everything 55 Problem 7-4 (Algo) 11% 148 129 Here are data on two companies. The T-bill rate is 4.8% and the market risk premium is 5.9%. Company $1 Discount Store Everything $5 Forecast return 128 Standard deviation of returns Beta 1.6 1.0 Required: What would be the expected rate of return for each company, according to the capital asset pricing model (CAPM)? (Round your answers to 2 decimal places.) Expected Retum Company 51 Discount Store Everything 55 %
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