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=0.198025var(GGG)=GGG2=0.198025
• ()=2=0.023716var(mkt)=mkt2=0.023716
• (,)=,=0.036019368covar(GGG,mkt)=GGG,mkt=0.036019368
• (,)=,=0.5256corr(GGG,mkt)=GGG,mkt=0.5256

(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?