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Here are data on two companies. The T-bill rate is 4.2% and the market risk premium is 5.0%. Company $1 Discount Store 128 Forecast return

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Here are data on two companies. The T-bill rate is 4.2% and the market risk premium is 5.0%. Company $1 Discount Store 128 Forecast return Everything $5 11% Standard deviation of returns 98 114 Beta 1.5 1.0 What would be the fair return for each company, according to the capital asset pricing model (CAPM)? (R- decimal places.) Company Expected Return $1 Discount Store Everything $5 12.50 % 21.00 %

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