Question: Use the CAPM to calculate the expected return for a potential firm you want to buy. The expected return of the market is 9%

Use the CAPM to calculate the expected return for a potential firm

Use the CAPM to calculate the expected return for a potential firm you want to buy. The expected return of the market is 9% and the return on a T-bill equals 2.7%. The firm's Beta equals 1.8 and a projects operating income of $8,272,238. Enter your answer as a full percentage number with two decimals, for example, for 12.54% enter 12.54 only.

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