Which contains the monthly prices for Costco Wholesale Corporation (COST) Walmart Inc. (WMT), Target Corporation (TGT), and the S&P 500 (SPY) for a five-year period, to answer the following questions. Also assume that the risk-free rate is 1.5% and the return on the market is 12%.

1A. What is your estimate of beta for Costco?

1B. What is your estimate of beta for Walmart?

1C. What is your estimate of beta for Target?

1D. What is your estimate of the required rate of return on equity (or cost of equity) for Costco using the CAPM?

1E.What is your estimate of the required rate of return on equity (or cost of equity) for Walmart using the CAPM?

1F. What is your estimate of the required rate of return on equity (or cost of equity) for Target using the CAPM?

1G. Which of the following firms has the highest cost of equity capital?

Returns WMT TGT COST SPY 12.00% Rm Rf 1.50% COST WMT TGT Beta Re - Adj Close Date COST WMT TGT SPY 10/1/15 $144.21 $50.56 $65.66 $189.34 11/1/15 $147.22 $51.97 $61.68 $189.16 12/1/15 $147.67 $54.14 $62.25 $184.79 1/1/16 $138.18 $59.10 $59.10 $62.09 02.09 $176.64 2/1/16 $137.18 $59.09 $67.26 $176.49 9.09 07.20 170.49 3/1/16 $144.48 $61.00 $71.13 $187.39 ws vo. 4/1/16 $135.81 $60.00 $68.73 $189.10 100.1 02.10 5/1/16 $136.80 $63.51 $59.46 $192.32 5.40 6/1/16 $144.41 $66.00 $60.82 $191.99 . 0.04 191.99 7/1/16 $153.77 $65.95 03:33 $65.62 $200.03 8/1/16 $149.05 $64.57 $61.14 $200.27 01.10 00.21 9/1/16 $140.62 $65.63 05.05 $60.30 $199.27 - 10/1/16 $136.34 $63.72 $60.35 $196,81 11/1/16 $138.40 $64,09 $67.82 . 07.04 $204.06 1204.00 12/1/16 $148.08 12/1/16 9148.08 $62.90 $63.96 $206.97 09.30 1/1/17 $151.63 00:37 + "11 251.03 $61.17 $57.10 $211.92 no 11.34 2/1/17 $163.87 $65.01 $52.04 03.01 $220.25 12.04 0.2 3/1/17 $155.51 100.00 $66.06 $49.32 $219.57 4/1/17 $164.62 $69.41 $49.91 $222.71 . 5/1/17 $167.32 $72.57 $49.28 $225.85 12:57 19.20 225.09 6/1/17 $154.75 0711 $70.34 1.24 $47.24 $226.19 7/1/17 $153.38 $74.35 $51.19 119 . $231.96 251.90 8/1/17 $151.67 $72.56 12.50 19.20 $49.26 $232.64 9/1/17 $159.48 $73.08 $53.91 $236.16 236.16 - 10/1/17 $156.36 $81.66 $53.94 $242.92 11/1/17 $179.03 $90.94 $54.72 $250.35 $ 12/1/17 $181.21 $92.36 $60.23 $252.09 1/1/18 $189.73 $100.75 $69.43 $267.66 2/1/18 $185.86 $85.07 $69.60 $257.93 . 3/1/18 $183.95 $84.09 $64.61 $249.86 4/1/18 $192.47 $84.11 $67.56 $252.16 5/1/18 $ 193.52 11 $78.48 $67.83 $258.29 6/1/18 $204.60 $81.95 $71.45 $258.61 7/1/18 $214.13 $85.37 $75.73 $269.40 WW *** 8/1/18 $228.25 $91.72 $82.13 $277.99 9/1/18 $230.53 $90.37 $83.45 $278.39 10/1/18 $224.40 $96.50 $79.11 $260.32 11/1/18 $227.00 $93.97 $67.13 $265.15 12/1/18 $200.41 $89.64 $63.04 $240.40 1/1/19 $211.16 *** $92.72 $69.63 $261.17 2/1/19 $215.20 $95.78 $69.29 $269.63 3/1/19 $238.87 $94.37 > $77.23 $273.31 4/1/19 $242.21 $100.04 $74.50 $285.73 *** 5/1/19 $236.34 $98.68 $77.42 $267.51 6/1/19 $261.39 $108.05 $84.10 $284.74 3 7/1/19 $272.64 $107.95 $83.89 $290.45 8/1/19 $291.56 $111.74 $103.93 $285.58 9/1/19 $285.61 $116.63 $104.60 $289.80 10/1/19 $294.53 $115.24 $104.60 $297.58 11/1/19 $297.86 $117.04 $122.31 $308.35 * * * 12/1/19 $292.00 $116.79 $126.19 $315.75 1/1/20 $303.53 $113.02 $108.99 $317.18 2/1/20 $279.31 $106.30 $101.38 $292.07 3/1/20 $283.87 $112.16 $92.02 $254.10 4/1/20 $301.66 $120.52 $108.62 $288.05 5/1/20 $307.81 $123.01 $123.01 $121.09 $ $301.78 6/1/20 $302.56 $119.29 $119.34 $305.78 7/1/20 $324.83 $128.87 $125.26 $325.22 8/1/20 $347.66 $138.28 $150.47 $347.92 9/1/20 $335.96 $135.29 $148.82 $329.33 9/18/20 $335.96 $135.29 $148.82 $330.65