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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 risk-free rate of interest is 5%. Use a 12% 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
Cisco 1.68
Apple 1.23
Hershey 0.45 Coca cola 0.79 In addition, assuming that a financial investor is building its portfolio, with the following allocation: Cisco 30%, Apple 40%, Hershey 10% and Coca Cola 29%, calculate the beta porfolio. Interpret results obtained.

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