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Business, 06.04.2020 19:07 Kaitneedshelps

Here are data on two companies. The T-bill rate is 5.8% and the market risk premium is 7.4%.

Company $1 Discount Store Everything $5
Forecast return 14 % 13 %
Standard deviation of returns 17 % 19 %
Beta 1.7 1.0

What would be the fair return for each company, according to the capital asset pricing model (CAPM)? (Round your answers to 2 decimal places.)

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Here are data on two companies. The T-bill rate is 5.8% and the market risk premium is 7.4%.
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