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The following table shows betas for several companies. Calculate each stock s expected rate of return using the CAPM. Assume the risk - free rate
The following table shows betas for several companies. Calculate each stocks expected rate of return using the CAPM. Assume the riskfree rate of interest is Use a risk premium for the market portfolio. Do not round intermediate calculations. Enter your answers as a percent rounded to decimal places. Company Beta Cost of Capital Cisco Apple Hershey Coca cola In addition, assuming that a financial investor is building its portfolio, with the following allocation: Cisco Apple Hershey and Coca Cola calculate the beta porfolio. Interpret results obtained.
The following table shows betas for several companies. Calculate each stocks expected rate of return using the CAPM. Assume the riskfree rate of interest is Use a risk premium for the market portfolio. Do not round intermediate calculations. Enter your answers as a percent rounded to decimal places.
Company Beta Cost of Capital
Cisco
Apple
Hershey Coca cola In addition, assuming that a financial investor is building its portfolio, with the following allocation: Cisco Apple Hershey and Coca Cola calculate the beta porfolio. Interpret results obtained.
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