You are evaluating two companies to determine which is a better return based on the risk for you. The first Company Corp USA has return of 12.5%, a beta of 2.2 and variation of 47% of your expected return. Corporation Global Inc has a return of 9.75%, a beta of 1.4 and a variation of 33%. The guaranteed rate on your investment is 5.5% along with a market risk premium of 4%. Complete AND briefly discuss the following:

a) Between these two companies which one would you rather own and why?

b) Which one of these companies would you prefer if the market premium is 7.5% and why?