Ja.What must be the beta of a portfolio with E(rp) = 18%, if re= 6% and Erm) = 14%? b. Here are data on two companies. The T-bills rate is 4% and the market risk premium is 6%. Company $1 Discount Store Everything $5 forecasted return 13% 10% Standard deviation of returns 12% 10% Beta 11.5 1 What would be the fair return for each company, according to the capital asset pricing model(CAPM)? Based on the calculation characterize each company as underpriced, overpriced or properly priced