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Based on the past 60 months of data for a common stock you estimate the following You also estimate the stock beta using the past

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Based on the past 60 months of data for a common stock you estimate the following You also estimate the stock beta using the past 60 months of data, Rit=.8+(1.70)1.2Rmt+eit(.27) The current T-bill is .7\% monthly (a) Usign the historical return, what is the expected return of the stock? (b) Usign the CAPM, what is the estimated return of the stock? (c) According to some analysis the value of Beta should be 0.90 for that common stock. Do you agree or disagree? Based on the past 60 months of data for a common stock you estimate the following You also estimate the stock beta using the past 60 months of data, Rit=.8+(1.70)1.2Rmt+eit(.27) The current T-bill is .7\% monthly (a) Usign the historical return, what is the expected return of the stock? (b) Usign the CAPM, what is the estimated return of the stock? (c) According to some analysis the value of Beta should be 0.90 for that common stock. Do you agree or disagree

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