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17. CAPM and Expected Return. The following table shows betas for several companies. Calcu late each stock's expected rate of return using the CAPM. Assume

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17. CAPM and Expected Return. The following table shows betas for several companies. Calcu late each stock's expected rate of return using the CAPM. Assume the risk-free rate of interes is 4%. Use a 7% risk premium for the market portfolio. (LO12-2) Beta Company Caterpillar Apple Johnson & Johnson Consolidated Edison 1.74 1.38 0.57 0.29

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