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Business, 24.10.2019 00:50 mamacita712

Here are data on two companies. the t-bill rate is 4% and the market risk premium is 6%.

company $1 discount store everything $5
forecast return 12% 11%
standard deviation of returns 8% 10%
beta 1.5 1.0

what would be the fair return for each company, according to the capital asset pricing model (capm)?

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Here are data on two companies. the t-bill rate is 4% and the market risk premium is 6%.

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