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Here are data on two companies. The T-bill rate is 4% and the market risk premium is 6%. Company Forecasted return Standard deviation of returns

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Here are data on two companies. The T-bill rate is 4% and the market risk premium is 6%. Company Forecasted return Standard deviation of returns Beta $1 Discount Store 12% 8% 1.5 Everything $5 11% 10% 1.0 Characterize each company in the above table as underpriced, overpriced, or properly priced. $1 Discount Store is Everything $5 is

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