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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.
Company Beta Cost of Capital
Caterpillar
Apple
Johnson & Johnson
Consolidated Edison
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