(246) CAPM and the Fama- French Three-Factor Model Suppose you are given the following information: The beta...

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CAPM and the Fama-

French Three-Factor Model Suppose you are given the following information: The beta of Company i, bi, is 1.1;

the risk-free rate, rRF, is 7%; and the expected market premium, rM − rRF, is 6.5%.

Assume that ai = 0.0.

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Financial Management Theory And Practice

ISBN: 9781439078105

13th Edition

Authors: Eugene F. Brigham, Michael C. Ehrhardt

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