Question: Here are data on two companies. The T-bill rate is 5.2% and the market risk premium is 6.5%. Company $1 Discount Store Everything $5 Forecast

Here are data on two companies. The T-bill rate is 5.2% and the market risk premium is 6.5%.
Company $1 Discount Store Everything $5
Forecast return 13% 12%
Standard deviation of returns 14% 16%
Beta 1.6 1

What would be the fair return for each company, according to the capital asset pricing model (CAPM)?(Round your answers to 2 decimal places.)
Company Expected Return
$1 Discount Store %
Everything $5 %

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