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Here are data on two companies. The T-bill rate is 4% and the market risk premium is 6%. Company $1 Discount Store Forecast return. 12%

Here are data on two companies. The T-bill rate is 4% and the market risk premium is 6%. Company $1 Discount Store Forecast return. 12% Standard deviation of returns 8% Beta 1.5 Everything $5. 11% 10% 1.0 Based on the fair return and according to the capital asset pricing model (CAPM) is each firm properly priced? $1 Discount Store Everything $5

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