1. The current risk free rate of return is 3% and the expected return on the market is 8%.
   1. Calculate the cost of equity (required rate of return) for a stock with a Beta = 0.54.
   2. Calculate the cost of equity (required rate of return) for a stock with a Beta = 1.35.
   3. Create a one way data table to determine the cost of equity by varying Beta.
   4. Use your data table to generate a graph. Include a title and label the axes for the graph.
   5. What does this graph represent?