3. Here are data on two companies. The T-bill rate is 4% and the market risk premium is 6%. Company $1 Discount Store Forecasted return 12% Standard deviation of returns Beta 8% 1.5 Everything $5 11% 10% 1.0 a. What would be the fair return for each company, according to the capital asset pricing model (CAPM)? b. Characterize each company as underpriced, overpriced, or properly priced.