What is merck estimated beta coefficient


Problem: Using the PC Quote Web Page find the beta for Merck & Co. Inc. 2 page, double space.

Q1. What is Merck's estimated beta coefficient?

Q2. 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'.

Q3. 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?

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