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

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Here are data on two companies. The T-bill rate is 4% and the market risk premium is 6%. Company Discount Store Everything Forecasted return 12% 11% Standard deviation of returns 8% 10% Beta 1.5 1.0 a. What would be the fair return for each company, according to the capital asset pricing model (CAPM)? b. What is your investment recommendation for each company

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