Question: Consider the table below relating to two competing companies: [10 Marks] Company Expected Return Standard Deviation Beta $1 Discount Store 12% 8% 1.5 $5 Everything

Consider the table below relating to two competing companies: [10 Marks] Company Expected Return Standard Deviation Beta $1 Discount Store 12% 8% 1.5 $5 Everything 11% 10% 1.0 Assume that the risk free rate of return is 4% and the market risk premium is 6%. According to the Capital Asset Pricing Model, what would the fair return for each company be? For each company, state whether the stock is underpriced, overpriced, or fairly priced. Explain your

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