d. The CAPM predicts that investors demand higher expected rates of return from stocks with returns that

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d. The CAPM predicts that investors demand higher expected rates of return from stocks with returns that are highly exposed to business-cycle risk.

e. Investors demand higher expected rates of return from stocks with returns that are very sensitive to fluctuations in the stock market.

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Principles Of Corporate Finance

ISBN: 9781264080946

14th Edition

Authors: Richard Brealey, Stewart Myers, Franklin Allen, Alex Edmans

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