1. Even though the CFO expects that it ultimately will not be useful, you have been asked using the Capital Asset Pricing Model (CAPM). Yahoo Finance reports Beta as 0.01. Man bond rate as the risk free rate, arguing that Investors should make long term investments. expected return on the stock market as a whole has been estimated to be 7%, 10% and 1: asks that you use an expected return of 9% for the average stock. The market risk Premiu 3% = 6%. Calculate the Mccormick & Co cost of equity using the CAPM. The formula is rs = rRF return on equity or the Cost of Equity, ro is the risk free rate, RP is the required stock m free rate, and B , (Beta) is the stocks relative risk. B is also described as the estimate of t individual stock contributes to a well balance portfolio