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Problem Suppose you estimate that eBay's stock has a volatility of 30% and a beta of 1.45 . A similar process for UPS yields a

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Problem Suppose you estimate that eBay's stock has a volatility of 30% and a beta of 1.45 . A similar process for UPS yields a volatility of 35% and a beta of 0.79 . Which stock carries more total risk? Which has more market risk? If the risk-free interest rate is 3% and you estimate the market's expected return to be 8%, calculate the equity cost of capital for eBay and UPS. Which company has a higher cost of equity capital

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