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Aluminum maker Alcoa has a beta of about 0.55, whereas Hormel Foods has a beta of 0.95. If the expected excess return of the market

Aluminum maker Alcoa has a beta of about 0.55, whereas Hormel Foods has a beta of 0.95. If the expected excess return of the market portfolio is 3%, which of these firms has a higher equity cost of capital, and how much higher is it?

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