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The risk-free rate is 1.5% and the expected return for the market is 7%. Security Beta Stock 1 1.7 Stock 2 Stock 3 0.3 1.2

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The risk-free rate is 1.5% and the expected return for the market is 7%. Security Beta Stock 1 1.7 Stock 2 Stock 3 0.3 1.2 Assume that the CAPM holds. IB Attempt 1/10 for 10 pts. Part 1 What is the cost of equity for stock 1? 3+ decimals Submit 18 Attempt 1/10 for 10 pts. Part 2 What is the cost of equity for stock 2? 3+ decimals Submit 18 Attempt 1/10 for 10 pts. Part 3 What is the cost of equity for stock 3

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