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QUESTION 3 The data presented here is for questions 3, 4, 5, 6, and 7 The beta for Caterpillar is 1.58 and the beta for
QUESTION 3 The data presented here is for questions 3, 4, 5, 6, and 7 The beta for Caterpillar is 1.58 and the beta for Colgate is 0.43. The annual return for the SP 500 is 10.5% and the risk free rate is 0.28%. s Caterpillar or Colgate riskier? 0 1 . Caterpillar . They are the same 4 None of the above QUESTION 4 Should Caterpillar or Colgate have the higher return according to CAPM? 1.Caterpillar 2. Colgate 3. They should have the same return 4- None of the above QUESTION 5 Calculate the return, in percent, for Caterpillar by using the CAPM model. Round to the second decimal. QUESTION 6 Calculate the return for Colgate, in percent, by using the CAPM model. Round to the second decimal
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