Question: 3. Here are data on two companies. The T-bill rate is 4% and the market risk premium is 6%. Company$1 Discount Store Everything $5 Forecasted

3. Here are data on two companies. The T-bill rate is

3. Here are data on two companies. The T-bill rate is 4% and the market risk premium is 6%. Company$1 Discount Store Everything $5 Forecasted return Standard deviation of returns Beta 11% 10% 1.0 8% 1.5 be the fair return for each company, according to the capital asset pricing model (CAPM)? b. Characterize each company as underpriced, overpriced, or properly priced

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