9-10 Expected Return Expected market interest rate on normal risk return Treasury bills pI retum (1981)23.3% 14 9.3 (19991419 4.8 9.3 Irwin/McGraw-Hill CThe McGraw-Hill Commpanies, Inc, 2001©The McGraw-Hill Companies, Inc.,2001 9- 10 Irwin/McGraw-Hill Expected Return (1999) 14.1% = 4.8 + 9.3 (1981) 23.3% = 14 + 9.3 premium normal risk + Treasury bills interest rate on = return Expected market