1. In you opinion, as an investor, which type of bitcoin startup (business model? Do you view as most promising ?
2. The current risk free rate of return is 6% and the expected return on the market is 9%.
a. Calculate the cost of equity (required rate of return) for a stock with a Beta = 0.6.
b. Calculate the cost of equity (required rate of return) for a stock with a Beta = 1.2.
c. Create a one way data table to determine the cost of equity by varying Beta.
d. Use your data table to generate a graph. Include a title and label the axes for the graph.
e. What does this graph represent?