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If the expected excess return of the market portfolio is 5

Aluminum maker Alcoa has a beta of about 1.73?, whereas Hormel Foods has a beta of 1.27. If the expected excess return of the market portfolio is 5% which of these firms has a higher equity cost of? capital, and how much higher is? it?

The firm that has the higher equity cost of capital is Alcoa or Hormel foods by? %

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Finance Basics: If the expected excess return of the market portfolio is 5

Reference No:- TGS02262144

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