Given a risk-free rate (rÌ‚_f) of 6 percent and a market risk premium (rÌ‚ m €“ rÌ‚f) of 8.2 percent, calculate the required rate of return on each of the following stocks, based on the betas given in Table 8.8:
a. American Electric Power
b. Citigroup
c. General Mills
d. Wynn Resorts

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TABLE 8.8 Betas for Selected Stocks Company Value Line Beta Company Hershey Foods Honeywell Value Line Beta 1.05 Amazon.com 0.65 American Electric Power 0.70 1.10 American States Water 0.70 IBM 0.85 0.95 Apple Avis Budget group Intel 1.00 Johnson & Johnson 1.50 0.75 JPMorgan Chase Kellogg Krispy Kreme Bank of America 1.45 1.20 Berkshire Hathaway 0.80 0.65 Boeing Cheesecake Factory 1.05 1.15 0.85 Microsoft 1.00 Citigroup Nike 0.80 1.45 Coca-Cola 0.70 Southwest Airlines 1.05 Coca-Cola Bottling Duke Energy 0.65 Target United Continental Holdings 0.70 0.65 1.05 DuPont 0.65 1.10 Wal-Mart Stores 0.95 ExxonMobil Whirlpool WEC Energy Group Wynn Resorts 1.30 General Electric 1.15 0.70 General Mills 0.70 1.35 Harley-Davidson 1.15 Yahoo! Inc. 1.05