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The following table shows betas for several companies during Fall 2020.. Calculate each stock's expected rate of return on equity using the Capital Asset

The following table shows betas for several companies during Fall 2020.. Calculate each stock's expected rate of return on equity using the Capital Asset Pricing Model (CAPM). Assume the risk-free rate of interest is 4%. Use a 6% risk premium (rm-m) for the market portfolio, or a total expected return of 10% for the market fm. Company Beta Tesla 1.92 Apple JP Morgan Chase Starbucks 1.31 1.13 81 Verizon 41 Betas from Yahoo Finance as of 10/28/2020

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