Suppose you estimate that Disneys stock (DIS) has a volatility of 20% and a beta of 1.25. A similar process for Chipotle (CMG) yields a volatility of 30% and a beta of 0.55. Which stock carries more total risk? Which has more market risk? If the risk-free interest rate is 3% and you estimate the markets expected return to be 8%, calculate the equity cost of capital for Disney and Chipotle. Which company has a higher cost of equity capital?