Task: Using the PC Quote Web Page find the beta for Merck & Co. Inc. 2 page, double space.
Question 1: What is Merck's estimated beta coefficient?
Question 2: Use the CAPM equation in order to find out what is the present 'cost of equity' of Merck? Explain the meaning of the 'cost of equity'.
Question 3: Choose two other companies. If you invest 1/3 of your money in each of these companies' stocks, what would the beta of the portfolio be? What would be the expected rate of return?