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What is the expected return indicated by CAPM for Company A & Company B given the below information? Company A B Forecast Return 12.00% 11.00%
What is the expected return indicated by CAPM for Company A & Company B given the below information? | ||||||
Company | A | B | ||||
Forecast Return | 12.00% | 11.00% | ||||
Standard Deviation | 8.00% | 10.00% | ||||
Beta | 1.5 | 1.0 | ||||
T-Bill rate: 4% | ||||||
Risk Premium: 6% |
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