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G + 9 expected return on stock = Risk free rate(rfr) + Beta*(market return - rfr) 10 RFR Beta market 12 13 14 15 16

G + 9 expected return on stock = Risk free rate(rfr) + Beta*(market return - rfr) 10 RFR Beta market 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 0.118 = 13 14 15 16 17 18 19 20 2015 2016 2017 2018 2019 2020 2021 2022 A 4% B 1.3 10% -0.0545 -0.01252 -0.57143 -0.0188 0.0364 0.0791 0.03963 -0.0648 -0.1232 0.0533 -0.02015 -0.1282 -0.0791 0.00099 0.2036 0.02885 0.0921 Avg 0.01036 Vars 0.10178 St.dev Co.var

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