Question: Suppose Cara Operations, www.cara.com, is considering opening a chain of coffee shops. Which of the betas shown in problem 21 is most relevant in determining

Suppose Cara Operations, www.cara.com, is considering opening a chain of coffee shops. Which of the betas shown in problem 21 is most relevant in determining the required rate of return for this venture? Explain why the others are not appropriate.

Listing Company Beta Magna International TSX, NYSE 1.19 TSX, Nasdaq .92 Open Text Agnico-Eagle Mines Second Cup Ltd TSX, NYSE -,38 .34 TSX

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