The following table shows betas for several companies. Calculate each stock s expected rate of return using

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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

4 % .

Use a

6 %

risk premium for the market portfolio.

Company Beta Cost of Capital

Caterpillar

1.84 %

Apple

1.48 %

Johnson & Johnson

0.67 %

Consolidated Edison

0.39 %

Posted Date: May 18, 2024 06:14 PM

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The following table shows betas for several companies. Calculate each stock s expected rate of return using

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