Tony Biddle also provided you with the latest issue of Value Line, the most widely followed independent source of financial data and forecasts. Value Line indicates that it expects the average stock in its sample of 1,700 companies to have a dividend yield of approximately 2.4 percent, and to appreciate in value by 55 percent over the next 4 years. Tony suggested that you can use data to calculate Value Line’s expected return on an average stock, which you could then use as the expected rate of return on the market (kM) for your CAPM studies of SDI.