n an essay, to be submitted to the assignment dropbox by the last day of Week 5, address the following: 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	12% 8% 1.5	11% 10% 1.0

What would be the fair return for each company, according to the capital asset pricing model (CAPM)? Explain how the CAPM is used to perform this calculation and how a financial advisor would utilize this information to advise a client.

Your paper must be in a Word document of 2-4 pages, not counting a title and references page. Include any calculations supporting your argument in a table within your paper, and be sure to submit only one document to be graded in response to this assignment. Cite outside references and/or your course textbook in support of your responses. Your references and your paper must be formatted in accordance withCSU-Global Guide to Writing and APA. Examine the Critical Thinking grading rubric for this assignment, found in the Module 5 folder, to see how you will be graded.