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The following table shows betas for several companies. Calculate each stock’s expected rate of return using...

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 7%. Use a risk premium of 9% for the market portfolio. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)

Company Beta Cost of Capital
Caterpillar 1.24 %
Cisco 1.46 %
Harley-Davidson 0.41 %
Hershey 0.55 %
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