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Here are data on two companies. The T-bill rate is 4% and the market risk premium is 6%. Company $1Discount store Everything $5 Forecasted return

Here are data on two companies. The T-bill rate is 4% and the market risk premium is 6%. Company $1Discount store Everything $5 Forecasted return 12.0% 11% Standard deviation of return 8.0% 10% Beta 1.5 1 What would be the fair return for each company, according to the capital asset pricing model (CAPM)? Characterize each company as underpriced, overpriced, or properly priced/

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