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Try comparing the stock betas of Google (GOOG), The Home Depot (HD), Du Pont (DD), Altria Group (MO), and Caterpillar (CAT). Once you have read
Try comparing the stock betas of Google (GOOG), The Home Depot (HD), Du Pont (DD), Altria Group (MO), and Caterpillar (CAT). Once you have read Section 12.3, use the capital asset pricing model to estimate the expected return for each of these stocks. You will need a figure for the current Treasury bill rate. You can find this also on finance.yahoo.com by clicking on BondsRates. Assume for your estimates a market risk premium of 7%.
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