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 7%. Use a 8% risk premium for the market portfolio. (Round your answers to 2 decimal places.) |
| Company | Beta | Cost of Capital |
| Cisco | 1.44 | % |
| Apple | 1.66 | % |
| Hershey | 0.61 | % |
| Coca-Cola | 0.81 | % |
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Financial Mathematics Derivatives And Structured Products
Authors: Chan
1st Edition
9811336954, 978-9811336959
