1. Select a company outside the retail drugstore industry, and examine its operating profit margin relative to the operating margin for its industry during the most recent 10-year period. Discuss the annual results in terms of levels and percentage changes.
2. Given Cara's beta of 1.75 and a risk-free rate of 7 percent, what is the expected rate of return for Cara assuming:
a. a 15 percent market return?
b. a 10 percent market return?