Question: Problem 12-17 CAPM and Expected Return (LO2) 10 points The following table shows betas for several companies. Calculate each stock's expected rate of return using

Problem 12-17 CAPM and Expected Return (LO2) 10 points The following

Problem 12-17 CAPM and Expected Return (LO2) 10 points The following table shows betas for several companies. Calculate each stock's expected rate of return using the CAPM. Assume the risk-free rate of interest is 8%. Use a risk premium of 10% for the market portfolio. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Beta Cost of Capital Company Caterpillar eBook 1.31 1.53 | Cisco Harley- Davidson 0.48 Print Hershey 0.62 References

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