Risk & return is a classic item in finance. You would like to estimate the return on General Electric stock could be given it's beta of $1\mathrm{.}68.$ Other data you have collected: the rate of return on $90$ day T$-$Bills is $2\%,$ on $5$ year T$-$Notes it $3\%$ and on the "long bond", the $30-$year T$-$Bond $=5\mathrm{.}5\%.$ The Prime is $7\%,$ LIBOR is $6\mathrm{.}5\%$ and the average return on the overall stock market is estimated to be $12\%.$