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Stocks expected rate of return by capm

Problem: CAPM and Expected Return. 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 5 percent. Use a 9 percent risk premium for the market portfolio.

Company / Beta:

Cisco    2.03
Citigroup       1.36
Merck             .40
Walt Disney    .84

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Finance Basics: Stocks expected rate of return by capm

Reference No:- TGS02038328

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