Question: An analyst is interested in estimating the required return on stock Great Graphic Graffiti, Inc (GGG). The analyst can observe the risk-free rate of 2.75%

An analyst is interested in estimating the required return on stock Great Graphic Graffiti, Inc (GGG). The analyst can observe the risk-free rate of 2.75% and will use the historical market premium of 9.5%. Additionally, the analyst estimates the following statistics based on 5 years of monthly returns of GGG and the market portfolio (mkt): ()=2=0.1764 ()=2=0.0441 (,)=,=0.06045228 (,)=,=0.6854 (A) What is GGG's estimated beta coefficient? (B) What is the CAPM expected return of GGG? (C) How would this information be of use to a firm attempting to calculate the NPV of a project?

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