Intro You are asked to use the CAPM to calculate the cost of equity for a company for use in project valuation. Assume that the project is roughly the same risk and duration as the company's existing projects, building construction projects making revenues from long-term lease contracts over several decades. The annualized yield on 30-day treasury bills: 2.2% The annualized yield on 30-year treasury bonds: 4.8% The average market return from 1927-today: 11.6% The forward looking market risk premium: 4% Sample covariance of company stock with S&P500: 0.45 Sample variance of S&P500: 0.5 Part 1 Attempt 1/2 for 10 pts. What is the cost of equity for the project according to the CAPM? (Note that you don't necessarily need to use all of the data presented.) 3+ decimals Intro You are asked to use the CAPM to calculate the cost of equity for a company for use in project valuation. Assume that the project is roughly the same risk and duration as the company's existing projects, building construction projects making revenues from long-term lease contracts over several decades. The annualized yield on 30-day treasury bills: 2.2% The annualized yield on 30-year treasury bonds: 4.8% The average market return from 1927-today: 11.6% The forward looking market risk premium: 4% Sample covariance of company stock with S&P500: 0.45 Sample variance of S&P500: 0.5 Part 1 Attempt 1/2 for 10 pts. What is the cost of equity for the project according to the CAPM? (Note that you don't necessarily need to use all of the data presented.) 3+ decimals