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Here are data on two companies. The T-bill rate is 5.6% and the market risk premium is 8.6%. Company $1 Discount Store Everything $5 Forecast

Here are data on two companies. The T-bill rate is 5.6% and the market risk premium is 8.6%. Company $1 Discount Store Everything $5 Forecast return 16% 15% Standard deviation of returns 27% 29% Beta 1.3 1 What would be the fair return for each company, according to the capital asset pricing model (CAPM)? (Round your answers to 2 decimal places.) Company Expected Return $1 Discount Store % Everything $5 %

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