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 6%. Use a 8% risk premium for the market portfolio. (Round your answers to 2 decimal places.) |
| Company | Beta | Cost of Capital |
| Cisco | 1.30 | % |
| Apple | 1.52 | % |
| Hershey | 0.47 | % |
| Coca-Cola | 0.67 | % |
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Derivatives And Internal Models
Authors: H. Deutsch
4th Edition
1349307661, 9781349307661
