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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

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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 5% 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.) Cost of Capital Company Caterpillar Apple Johnson & Johnson Consolidated Edison Beta 1.80 1.44 0.83 0.35 %

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