Question: Is this correct? Here are data on two companies. The T-bill rate is 5.8% and the market risk premium is 7.4%. Everything $5 13% Company

Is this correct?

Is this correct? Here are data on two companies. The T-bill rate

Here are data on two companies. The T-bill rate is 5.8% and the market risk premium is 7.4%. Everything $5 13% Company Forecast return Standard deviation of returns Beta $1 Discount Store 14% 17% 1.7 198 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.) Company $1 Discount Store Everything $5 Expected Return 18.38% 13.20 %

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