Using CAPM You can find estimates of beta for companies under the "Mthly. Val. Data" link. Locate the beta for Amazon.com (AMZN) and Dow Chemical (DOW). How has the beta for each of these companies changed over the period reported? Using the historical risk-free rate and market risk premium found in the chapter, calculate the expected return for each company based on the most recent beta. Is the expected return for each company what you would expect? Why or why not?
