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 10% risk premium for the market portfolio. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) |
| Company | Beta | Cost of capital |
| Cisco | 1.18 | % |
| Apple | 1.40 | % |
| Hershey | .35 | % |
| Coca-Cola | .49 | % |
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Financial Statements A Step By Step Guide To Understanding And Creating Financial Reports
Authors: Thomas Ittelson
1st Edition
1632652072, 978-1632652072
