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Here are data on two companies. The T-bill rate is 5.0% and the market risk premium is 95%. Company Forecast return Standard deviation of returns
Here are data on two companies. The T-bill rate is 5.0% and the market risk premium is 95%. Company Forecast return Standard deviation of returns Beta $1 Discount StoreEverything $5 16% 24% 1.4 15% 26% What would be the fair return for each company, according to the capital asset pricing model (CAPM)? (Round your answers to 2 decimal places.) Company $1 Discount Store Everything $5 Expected Return
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