what rome does beta paly in absoute valuation

KNOWLEDGE CHECK PEELP for explanation. Cheru) to Return Output to Excel 1100 1 015 BRUSCOLO Did Gwth Rate De Pay Ratio 01/10/15 03/08/15 de Country Rs Premium History Cu USD United States Return Rate Premium 03/05/15 01/04/15 36.5661 03/03/15 03/02/15 Market risk 7.28% x 1.26 = 9.17% 9.4796 market return Equity risk premium premium 11.4% Cost of Equity Risk-free rate 1 2.19% 2.19% Risk-free rate for explanation 0 Bade che a: take 10-year bond yield b: identify market return c: calculate premium d: estimate beta for Delta Airlines e: multiply market return by beta f: take number and add back risk-free 3133 divi