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 6%. Use a 8% risk premium for the market portfolio (Do not round Intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Cost of Capital % Company Caterpillar Apple Johnson & Johnson Consolidated Edison Beta 1.72 1.36 0.55 0.27 X

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