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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 4%. Use a 6% risk premium for the market portfolio.
Company Beta Cost of Capital
Caterpillar 1.84%
Apple 1.48%
Johnson & Johnson 0.67%
Consolidated Edison 0.39%

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