Aluminum maker Alcoa has a beta of about 1.98, whereas Hormel Foods has a beta of...

Transcribed Image Text:

Aluminum maker Alcoa has a beta of about 1.98, whereas Hormel Foods has a beta of 0.39. If the expected excess return of the market portfolio is 5.20%, which of these firms has a higher equity cost of capital, and how much higher is it? The expected excess return of Alcoa's equity is decimal places.) %. (Round to two The expected excess return of Hormel's equity is decimal places.) %. (Round to two Therefore, points. (Se has the higher equity cost of capital by down menu and round to two decimal places.) percentage Alcoa Hormel Aluminum maker Alcoa has a beta of about 1.98, whereas Hormel Foods has a beta of 0.39. If the expected excess return of the market portfolio is 5.20%, which of these firms has a higher equity cost of capital, and how much higher is it? The expected excess return of Alcoa's equity is decimal places.) %. (Round to two The expected excess return of Hormel's equity is decimal places.) %. (Round to two Therefore, points. (Se has the higher equity cost of capital by down menu and round to two decimal places.) percentage Alcoa Hormel