please answer 4-7 please

4. Here are data on two companies. The T-bill rate is 4% and the market risk premium is 6%. $1 Discount Store Everything $5 Company Forecast return Standard deviation of returns Beta 12% 8% 1.5 11% 10% 1.0 What would be the expected rate of return for each company, according to the capita asset pricing model (CAPM)? (LO 7-1) Chapter 7 Copital Asset Pricing and Arbitrage Pricing Theory racterize each company in the previous problem as underpriced, overpriced, or prop- the expected rate of return for a stock that has a beta of 1 if the expected return erly priced. (LO 7-2) on the market is 15%? a. 15%. b. More than 15%. (LO 7-2) c. Cannot be determined without the risk-free rate. kin, Inc., stock has a beta of 1.2 and Quinn, Inc., stock has a beta of.6. Which of the Kas following statements is most accurate? a. The expected rate of return will 7. (LO 7-1) be higher for the stock of Kaskin, Inc., than that of Quinn, Inc. h. The stock of Kaskin, Inc., has more total risk than Quinn, Inc. The stock of Quinn, Inc., has more systematic risk than that of Kaskin, Inc