Question: As part of the Final Project Assignment on Week 4, Day 6, calculate the beta and the cost of equity capital. The following historical data

As part of the Final Project Assignment on Week 4, Day 6, calculate the beta and the cost of equity capital. The following historical data for a proxy firm is similar to the firm evaluated in the final project assignment.

Using the above data calculate the beta of the firm.
If the risk-free rate is 4%, and the market rate of return is 14%, calculate the required rate of return (cost of equity) for the stock usingCAPM.

Year 20X0 20X1 Market rate of return 250 10% 15% 20% Firm rate of return 15% 60% 20X3 12%

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