Here are data on two companies. The T-bill rate is 5.0% and the market risk premium...
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Here are data on two companies. The T-bill rate is 5.0% and the market risk premium is 6.2%. Company $1 Discount Store Forecast return 13% Standard deviation of returns 13% Beta 1.6 Everything $5 12% 15% 1.0 Required: What would be the expected rate of return for each company, according to the capital asset pricing model (CAPM)? (F answers to 2 decimal places.) Company Expected Return $1 Discount Store % Everything $5 % Here are data on two companies. The T-bill rate is 5.0% and the market risk premium is 6.2%. Company $1 Discount Store Forecast return 13% Standard deviation of returns 13% Beta 1.6 Everything $5 12% 15% 1.0 Required: What would be the expected rate of return for each company, according to the capital asset pricing model (CAPM)? (F answers to 2 decimal places.) Company Expected Return $1 Discount Store % Everything $5 %
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