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Here are data on two companies. The T-bill rate is 4.6% and the market risk premium is 8.9%. Company $1 Discount Store Everything $5 Forecast
Here are data on two companies. The T-bill rate is 4.6% and the market risk premium is 8.9%. Company $1 Discount Store Everything $5 Forecast return 15% 14% 22% 24% Standard deviation of returns Beta 1.4 1.0 Required: What would be the expected rate of return for each company, according to the capital asset pricing model (CAPM)? (Round your answers to 2 decimal places.) Company Expected Return $1 Discount Store Everything $5 % %
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