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The T-bill rate is 5% and the market risk 1. Here are data on two companies. premium is 8%. Company Forecast Return Standard Deviation of
The T-bill rate is 5% and the market risk 1. Here are data on two companies. premium is 8%. Company Forecast Return Standard Deviation of returns ABC 21% 7%- 1.45 XYZ- 14%- 10%- 1.10 Beta- What should be the expected rate of return for each company, according to the capital asset pricing model (CAPM)
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