You are considering investing in Boeing and$/$or Walmart shares.

You have a $5-$year investment time horizon, meaning you expect to hold each investment for $5$ years.

Your research has identified the following:

$$ Equity Risk Premium: $4\mathrm{.}25\%$

$$ US Treasury Rates: $1$ year $5\mathrm{.}21\%,3$ year $4\mathrm{.}31\%,5$ year $4\mathrm{.}14\%,10$ year $4\mathrm{.}21\%$

Boeing:

$$ Currently trading at $$233\mathrm{.}43$ per share

$5-$year analyst consensus is projecting $$412\mathrm{.}50$ per share

$5-$year Beta: $1\mathrm{.}53$

Walmart

$$ Currently trading at $$153\mathrm{.}89$ per share

$5-$year analyst consensus is projecting $$196\mathrm{.}40$ per share

$5-$year Beta: $0\mathrm{.}49$

You will be using the Capital Asset Pricing Model to make your investment decision and you are capital$-$gain oriented.

QUESTIONS:

a$)$ Which risk free rate would you use and why?

b$)$ Would you invest in Boeing and$/$or Walmart $($show all calculations$)?$