Calculate each stock expected rate of return using CAPM

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Reference no: EM131930702

The following table shows betas for several companies. Calculate each stock’s expected rate of return using the CAPM. Assume the risk-free rate of interest is 8%. Use a 10% risk premium for the market portfolio. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)

Company Beta Cost of capital Cisco 1.25 % Apple 1.47 % Hershey .42 % Coca-Cola .56 %

Reference no: EM131930702

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