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Here are data on two companies. The T-bill rate is 5.6% and the market risk premium is 8.6%. Company Forecast return Standard deviation of returns
Here are data on two companies. The T-bill rate is 5.6% and the market risk premium is 8.6%. Company Forecast return Standard deviation of returns Beta $1 Discount Store 16% 27% 1.3 Everything $5 15% 29% 1.0 What would be the fair return for each company, according to the capital asset pricing model (CAPM)? (Round your answers to 2 decimal places.) Expected Return Company $1 Discount Store Everything $5 % %
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