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Find the expected returns of following stocks by using the CAPM equation: 1. Facebook (FB) 2. Wells Fargo & Company (WFC) 3. Essentra plc (FLRAF)

Find the expected returns of following stocks by using the CAPM equation:

1. Facebook (FB)

2. Wells Fargo & Company (WFC)

3. Essentra plc (FLRAF)

Provide explanation and references of following:

Interpret the expected return you get from CAPM equation. How beta value affects the expected return of the stock.
From where you are obtaining value of beta.
Are you using 2 years or 5 years beta value? Explain your reasoning.
What is the source of your risk-free rate and what is your reason to select it?

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