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Assuming the T-Bill rate is 3% and the Market premium is 5%; what would be the fair return for each company according to the capital
Assuming the T-Bill rate is 3% and the Market premium is 5%; what would be the fair return for each company according to the capital asset pricing model?
company | $1discount store | everything$5 |
forecasted return | 12% | 11% |
standard deviation | 8% | 10% |
beta | 1.5 | 1 |
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