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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 7%. Use a risk premium of 9% for the market portfolio. (Do not round Intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Beta Cost of Capital % Company Caterpillar Cisco Harley- Davidson Hershey 1.13 1.35 % 0.3 % 0.44 %

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