You are a professor at Hilbert College. A student approached you asking for clarification on the Capital Asset Pricing Model. The student had the following formula written down from class.
E(r) = 5.0% + 1.2 (8.0% - 5.0%).
Round answers to 1 decimal and use "%" where appropriate.
Advise the student on the following:
Market Risk Premium is__________?
T-bill Rate is___________?
Expected Return is__________?