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e. CAGR (compound ordinary progress return). A capital investor is really interested in The web return obtained calendar year immediately after calendar year, Hence usage of geometric is a lot more proper. As a result we would use geometric normal for hazard totally free level and possibility premium for each of the three divisions, as given in exhibit 5 of the case.

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By analyzing a specific instance, scientists can utilize the things they learn to a bigger picture, frequently informing idea or coverage.