Question: hope this js the info needed to answer 4. A stock's factor betas are as follows: 1.51 BSMB 0.894 0.421 0.685 BAC BERAPR Using

hope this js the info needed to answer
4. A stock's factor betas are as follows: 1.51 " BSMB 0.894 0.421 0.685 BAC BERAPR Using the FFC specification and Table 13.1 of the book/PowerPoint , what is the cost of capital of this stock? Assume a monthly risk-free return of 0.2%. 15% Efficient Portfolio (after news announcement) GE O Tiffany 10% O Apple Nike Market Portfolio (efficient prior to news) Amazon Expected Return 5% OIBM Walmart Molson-Coors Newmont Mining O McDonald's = effect of news T-Bills 0% 0% 5% 10% 15% 20% 259 30% 35% 4096 Volatility (standard deviation)
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