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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

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 risk premium of 6% for the market portfolio. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Company Beta Cost of Capital Caterpillar 1.16 % Cisco 1.38 % Harley-Davidson 0.33 % Hershey 0.47 %

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