What is mercks estimated beta coefficient


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?

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Finance Basics: What is mercks estimated beta coefficient
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