Problem $7-4($Algo$)$

Here are data on two companies. The T$-$bill rate is $5\mathrm{.}0\%$ and the market risk premium is $6\mathrm{.}2\%.$

Company $$1$ Discount Store Everything $$5$

Forecast return $13\%12\%$

Standard deviation of returns $13\%15\%$

Beta $1\mathrm{.}61\mathrm{.}0$

Required:

What would be the expected rate of return for each company, according to the capital asset pricing model $($CAPM$)?$

Note: Round your answers to $2$ decimal places.