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Here are data on two companies. The T-bill rate is 5.6% and the market risk premium is 7.1%. 51 Discount StoreEverything S Company Forecast return

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Here are data on two companies. The T-bill rate is 5.6% and the market risk premium is 7.1%. 51 Discount StoreEverything S Company Forecast return Standard deviation of returns Beta 14% 16% 1.6 13% 18% What would be the fair return for each company, according to the capital asset pricing model (CAPM)? Company $1 Discount Store Everything $5 Expected Return

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