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| | Rates of Return | |
| Year | AppleBanana Co. | Market Index |
| 1 | 17% | 13% |
| 2 | 15% | 9% |
| 3 | 6% | -11% |
| 4 | 8% | 10% |
| 5 | 10% | 11% |
| 6 | 12% | 6% |
The equation of the characteristic line for AppleBanana Co. is R =_____ +______ Rm.
If you expected the return on the Market Index to be 12%, you expect the return on AppleBanana Co. to be______ %.
(DO NOT round intermediate calculations. Round your answers to 2 decimal places (e.g., 32.00). Do not include the percentage sign (%).)
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