c. Suppose the regression line were exactly as shown by your graph from part b but the

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c. Suppose the regression line were exactly as shown by your graph from part b but the scatter of points were more spread out. How would this affect (1) the firm’s risk if the stock is held in a one-asset portfolio and (2) the actual risk premium on the stock if the CAPM holds exactly?

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Related Book For  book-img-for-question

Financial Management Theory And Practice

ISBN: 9781439078105

13th Edition

Authors: Eugene F. Brigham, Michael C. Ehrhardt

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