321.

315.2

Let's say that Nike wants to market a new sports drink called "Swoosh!" Assume that the beta of Nike is 1.2, the beta of Gatorade sports drinks is 1.4, the expected return on the stock market is 12% and the risk-free return is 4%. What discount rate (opportunity cost of capital) should Nike use for Swoosh! and WHY? (2 pts)