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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

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 portfolo (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 1.30 1.44 0.63 0.35 90

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