Aluminum maker Alcoa has a beta of about 1.98​, whereas Hormel Foods has a beta of 1.78. If the expected excess return o

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answerhappygod
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Aluminum maker Alcoa has a beta of about 1.98​, whereas Hormel Foods has a beta of 1.78. If the expected excess return o

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Aluminum maker Alcoa has a beta of about 1.98​, whereas Hormel
Foods has a beta of 1.78. If the expected excess return of the
market portfolio is 3%​, which of these firms has a higher equity
cost of​ capital, and how much higher is​ it?
The firm that has the higher equity cost of capital is__
by__?
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