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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 7%. Use a 9% risk premium for the market portfolio. (Round your answers to 2 decimal places.)

Company Beta Cost of Capital

Cisco 1.32 %

Apple 1.54 %

Hershey 0.49 %

Coca-Cola 0.69 %

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