Hi....I need help with question #4 (below) which is in part interpreting or explaining the data gathered from #1 and #2. Thank you.

For each stock listed, calculate the required rate of return as indicated by the Capital Asset Pricing Model (CAPM).

Formula

K_equity = K_rf + (K_m K_rf)

STOCK 1 0.041 + [ 0.74 x (0.121 0.041)] = 0.1002 Required Return 10.02%	STOCK 2 0.041 + [ 2.30 x (0.121 0.041)] = 0.225 Required Return 22.50%	STOCK 3 0.041 + [ 1.89 x (0.121 0.041)] = 0.1922 Required Return 19.22%	STOCK 4 0.041 + [ 1.31 x (0.121 0.041)] = 0.1458 Required Return 14.58%	STOCK 5 0.041 + [ 1.52 x (0.121 0.041)] = 0.1626 Required Return 16.26%
STOCK 6 0.041 + [ 1.04 x (0.121 0.041)] = 0.1242 Required Return 12.42%	STOCK 7 0.041 + [ 1.99 x (0.121 0.041)] = 0.2002 Required Return 20.02%	STOCK 8 0.041 + [ 0.89 x (0.121 0.041)] = 0.1122 Required Return 11.22%	STOCK 9 0.041 + [ 1.06 x (0.121 0.041)] = 0.1258 Required Return 12.58%	STOCK 10 0.041 + [ 1.76 x (0.121 0.041)] = 0.1818 Required Return 18.18%
STOCK 11 0.041 + [ 0.91 x (0.121 0.041)] = 0.1138 Required Return 11.38%	STOCK 12 0.041 + [ 1.80 x (0.121 0.041)] = 0.185 Required Return 18.50%	STOCK 13 0.041 + [ 0.82 x (0.121 0.041)] = 0.1066 Required Return 10.66%	STOCK 14 0.041 + [ 1.12 x (0.121 0.041)] = 0.1306 Required Return 13.06%	STOCK 15 0.041 + [ 0.99 x (0.121 0.041)] = 0.1202 Required Return 12.02%
STOCK 16 0.041 + [ 1.01 x (0.121 0.041)] = 0.1218 Required Return 12.18%	STOCK 17 0.041 + [ 0.67 x (0.121 0.041)] = 0.0946 Required Return 9.46%	STOCK 18 0.041 + [ 1.11 x (0.121 0.041)] = 0.1298 Required Return 12.98%	STOCK 19 0.041 + [ 0.78 x (0.121 0.041)] = 0.1034 Required Return 10.34%	STOCK 20 0.041 + [ 1.20 x (0.121 0.041)] = 0.137 Required Return 13.70%

2. Calculate the value of each stock share using the constant growth formula.

Formula	Vcs = D1 / (Kequity - g)
Stock Rank	Tot Div, 2003	5-Yr Div Growth	g	Beta	Price, 1/05/04	Value of Stock
1	$0.95	0.58%	0.0058	0.74	$14.89	$10.06
2	$0.00	-100.00%	-1.0000	2.3	$29.02	$0.00
3	$0.00	0.00%	0.0000	1.89	$18.83	$0.00
4	$1.25	8.50%	0.0850	1.31	$93.48	$20.56
5	$0.78	1.25%	0.0125	1.52	$67.29	$5.20
6	$0.06	-9.00%	-0.0900	1.04	$3.28	$0.28
7	$0.00	-100.00%	-1.0000	1.99	$9.00	$0.00
8	$0.00	0.00%	0.0000	0.89	$55.91	$0.00
9	$6.22	0.98%	0.0098	1.06	$98.47	$53.62
10	1.00	-0.48%	0.0048	1.76	$43.07	$5.36
11	0.00	-100.00%	-1.0000	0.91	$37.55	$0.00
12	$0.25	2.10%	0.0210	1.8	$38.30	$1.52
13	$0.98	-2.00%	-0.0200	0.82	$76.33	$7.74
14	$2.25	4.00%	0.0400	1.12	$67.09	$24.83
15	$5.80	-8.00%	-0.0800	0.99	$193.05	$28.97
16	$1.02	13.00%	0.1300	1.01	$38.33	$124.39
17	$6.00	5.00%	0.0500	0.67	$71.11	$134.53
18	0.00	0.00%	0.0000	1.11	$9.23	$0.00
19	$1.00	9.00%	0.0900	0.78	$19.35	$74.63
20	$0.00	-100.00%	-1.0000	1.2	$29.92	$0.00

#4 Compare the values you calculated to each of the market prices for the top twenty stock picks. Are your calculations close approximations of the market prices? Why do you think there are differences?