Company A's historical returns for the past three years are: 6.0%,15%,and 15%.Similarly,the market portfolio's returns were: 10%,10%,and 16%.Suppose the risk-free rate of return is 4%.What is the cost of equity capital (required rate of return of company A's common stock),computed with the CAPM?

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The Answer of Company A's historical returns for the past three years are: 6.0%,15%,and 15%.Similarly,the market portfolio's returns were: 10%,10%,and 16%.Suppose the risk-free rate of return is 4%.What is the cost of equity capital (required rate of return of company A's common stock),computed with the CAPM?

Company A's Historical Returns for the Past Three Years Are