3% STEP 3 FULLY INTEGRATED AND SEGMENTED RISK PREMIUM + RISK-FREE RATE “CAPITAL MARKET EXPECTATIONS,” BY JOHN P

3.20% + 3.1% =

6.3%

Step 3

Fully integrated and

segmented risk premium +

Risk-free rate

“Capital Market Expectations,” by John P. Calverley, Alan M. Meder, Brian D. Singer,

and Renato Staub