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Estimate the expected return of the stock you are assigned using CAPM (Please provide details on your estimation. You need to estimate average annualized risk

  1. Estimate the expected return of the stock you are assigned using CAPM (Please provide details on your estimation. You need to estimate average annualized risk free rate and market risk premium. A reasonable risk-free rate should be between 2%-3% and reasonable risk premium should be between 5%-9%). Discuss your rationale on the estimated risk-free rate, market risk premium, beta, expected return.

Stock: NRG Energy

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