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

Problem 12-17 CAPM and Expected Return (LO2) The following table shows

Problem 12-17 CAPM and Expected Return (LO2) 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 10% risk premium for the market portfolio. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Company Caterpillar Apple Johnson & Johnson Consolidated Edison Beta 1.64 1.28 Cost of Capital 26,30 % 22.70% 14.60 11.B01 0.47 0.19

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