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 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. Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Company Caterpillar Apple Johnson & Johnson Consolidated Edison Beta 1.70 1.34 0.53 0.25 Cost of Capital % % % %
Problem 12-17 CAPM and Expected Return (LO2) The following table shows

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. Note: Do not round intermediote calculations. Enter your answers os o percent rounded to 2 decimal places

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