Question
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 10%. Use a 11% risk premium for the market portfolio. (Round your answers to 2 decimal places.) |
| Company | Beta | Cost of Capital |
| Cisco | 1.50 | % |
| Apple | 1.72 | % |
| Hershey | 0.67 | % |
| Coca-Cola | 0.87 | % |
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Money Banking And Financial Markets
Authors: Stephen Cecchetti, Kermit Schoenholtz
3rd Edition
007337590X, 9780073375908
