You work for a financial services firm which advises high-net-worth clients. You've just received this memo from your boss From: Chip Campbell, Principal of Triangle Wealth Partners To: (Your name) Re Predicted Return Calculations Date: 21 March 2016 Political and economic turmoil at home and abroad has rattled many of our clients, who see continued unrest as leading to sharp, sudden swings in the stock market. Several of them wish to pull out of their riskier investments and get into the safest possible equities l've compiled a list of 12 American companies which are household names. Please determine which among them are "safe" equity investments and predict their (annual) rates of returns. Once I have your recommendations l'll approach our more skittish clients to discuss moving out of the stocks they hold currently and into the stocks you recommend. Companies MCD McDonald's Corp PZZA Papa John's International Inc WMT Wal-Mart Stores Inc. TGT Target Corp VZ Verizon Communications Inc. GM General Motors GT WHR WYN MAR Ford Motor Co Goodyear Tire & Rubber Co. Whirlpool Corp Wyndham Worldwide Corp Marriott International Inc. AT&T Inc. The excel workbook that accompanies this assignment has all of the data you need to complete this assignment. These data include: 61 start-of-month prices for each stock 61 start-of-month values for two different stock indexes: the S&P 500 (AGSPC) and the Vanguard Total Stock Market Index (VITSX). Both are portfolios which hold c% of the total value of each stock outstanding. ^GSPC holds c% of the total value of the stock of each of the 500 largest US companies, VITSX holds c% of the total value of the stock of every US company having publicly traded stock You also have these data Annualized 3-month Treasury bill rate (on 3/21/2016) . Historical market risk premium (RM - RF): 0.0031 0.0700