Here are data on two companies. The T$-$bill rate is $4\%$ and the market risk premium is $6\%.$ See image for chart.

What would be the fair return for each company, according to the capital asset pricing model $($CAPM$)?$

Explain how the CAPM is used to perform this calculation and how a financial advisor would utilize this information to advise a client.

Discuss how changes in expected returns impact company stock prices.