Suppose that in place of the S&P 500, you wanted to use a broader market portfolio of

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Suppose that in place of the S&P 500, you wanted to use a broader market portfolio of all U.S.

stocks and bonds as the market proxy. Could you use the same estimate for the market risk premium when applying the CAPM? If not, how would you estimate the correct risk premium to use?

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Corporate Finance

ISBN: 9780137845071

6th Edition

Authors: Jonathan Berk, Peter DeMarzo

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Question Posted: Jun 12, 2024 01:07 AM

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Suppose that in place of the S&P 500, you wanted to use a broader market portfolio of

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Corporate Finance

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