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 8%. Use a 9% risk premium for the market portfolio. (Round your answers to 2 decimal places.)
| Company | Beta | Cost of Capital |
| Cisco | 1.46 | ___________% |
| Apple | 1.68 | ___________% |
| Hershey | 0.63 | ___________% |
| Coca-Cola | 0.83 | ___________% |
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Personal Finance For Dummies
Authors: Eric Tyson
9th Edition
1119517893, 978-1119517894
