What would be the fair return for each company according to


Here are data on two companies. The T-bill rate is 5.2% and the market risk premium is 8.0%. Company $1 Discount Store Everything $5 Forecast return 16% 15% Standard deviation of returns 25% 27% 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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Financial Management: What would be the fair return for each company according to
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