Question: Problem 7-4 Here are data on two companies. The T-bill rate is 5.4% and the market risk premium is 8.3%. Company Forecast return Standard deviation

Problem 7-4 Here are data on two companies. The T-bill rate

Problem 7-4 Here are data on two companies. The T-bill rate is 5.4% and the market risk premium is 8.3%. Company Forecast return Standard deviation of returns Beta $1 Discount Store Everything $ 16% 26% 1.3 15% 28% 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

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