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The following table shows betas for several companies. Calculate each stocks expected rate of return using the CAPM. Assume the risk-free rate of interest is

The following table shows betas for several companies. Calculate each stocks expected rate of return using the CAPM. Assume the risk-free rate of interest is 6%. Use a 8% risk premium for the market portfolio. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)

Company Beta Cost of Capital
Caterpillar 1.81 %
Apple 1.45 %
Johnson & Johnson 0.64 %
Consolidated Edison 0.36 %

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