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Here are data on two companies. The T - bill rate is 5 . 0 % and the market risk premium is 9 . 5

Here are data on two companies. The T-bill rate is 5.0% and the market risk premium is 9.5%.
Company $1 Discount Store Everything $5
Forecast return 16%15%
Standard deviation of returns 24%26%
Beta 1.41.0
Required:
What would be the expected rate of return for each company, according to the capital asset pricing model (CAPM)?

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