9 After careful consideration, Wilton Wayfarers plc decides to drop African adventure holidays from its range of

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9 After careful consideration, Wilton Wayfarers plc decides to drop African adventure holidays from its range of package tours since political uncertainties have made earnings from these tours extremely variable. It decides to put more effort into marketing European weekend breaks, for which there has always been a steady demand. Use the capital asset pricing model to analyse the likely effect upon the required rate of return on Wilton’s shares and use a supply and demand diagram to show how this change will affect the share’s price.

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