Calculate the beta for each stock and discuss is riskiness. 

b. Determine the required rate of return for each stock according to the CAPM. 

c. Assuming that each is expected to pay a dividend of $2.10 next year and grows at a constant rate of 8 percent forever, what is the intrinsic value of each stock? 

d. Discuss the relationship between beta, CAPM and share price.

INformation on three stocks, the market and the risk free rate.

security	mean return	variance	covariance
Mollen	.20	.15	.08
,Kollen,	.10	.06	.03
Sollen,	.13	.10	.05
Market	.15	.06
Risk-free ,Rate	.05