21. (Bodie, Kane, and Marcus - adapted) Here are data on two companies. The T-bill rate is 4% and the market risk premium is 6%. Portfolio A Portfolio B Expected return Risk-free rate Standard Deviation a. What would be the fair return for each company, according to the capital asset pricing model (CAPM)? (Ans: 13% and 10%) b. Comparing your results for Business Busters in this problem with the results that you found for the same company in the previous problem, do you conclude that the company is currently overvalued, undervalued, or neither? (Ans: Overvalued, since the expected return over its current price (8.75%) is lower than its expected return assessed by CAPM.)