utilities versus Petroleum and natural gas 0.77 versus 1.31 food products (grocery stores)versus Apparel(retailers) 0.68 versus 1.09 Banking (Depository Institutions) versus Financial Trading 0.76...

utilities versus Petroleum and natural gas                               0.77 versus 1.31

food products (grocery stores)versus Apparel(retailers)          0.68 versus 1.09

Banking (Depository Institutions) versus Financial Trading       0.76 versus 1.09

(Security and commodity Brokers)

For each matched pair of industries, use the CAPM to compute the required rate of return on equity capital for the median firm in each industry. Assume that the risk-free rate of return is 4.0%  and the market risk premium is 5.0%