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e. CAGR (compound normal advancement return). A capital Trader is definitely serious about The online return received 12 months immediately after 12 months, Therefore use of geometric is more ideal. Therefore we would use geometric normal for chance totally free rate and threat premium for each in the 3 divisions, as presented in exhibit 5 of the case.

The significant danger of recent entrants through which the newcomers have uncomplicated gateway strategycapturingan attractive market place withno obstacles. This leads Global players entering toward Indian textile market place.

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