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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 of interest is
The following table shows betas for several companies. Calculate each stock's expected rate of return using the CAPM. Assume the risk-free rate of interest is 4%. Use a 7% risk premium for the market portfolio. (Do not round Intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Beta Cost of Capital 1.74 Company Caterpillar Apple Johnson & Johnson Consolidated Edison 1.38 0.57 %6 96 0.29
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