Calculate stock expected rate of return using the capm

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Reference no: EM132524316

Use the following betas for several companies to calculate each stock's expected rate of return using the CAPM. Assume the risk-free rate of interest is 4%. Use a 6% risk premium for the market portfolio. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)

Company - Beta
Catepillar - 1.68
Apple - 1.32
J & J - 0.51
Edison - 0.23

Reference no: EM132524316

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