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1. (10 pts) The capital asset pricing model, discussed in chapter 6, provides a pricing model of stocks or other assets. The model provides investors

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1. (10 pts) The capital asset pricing model, discussed in chapter 6, provides a pricing model of stocks or other assets. The model provides investors with a tool to incorporate market risk into a stock's pricing mechanism by requiring additional return on an asset that is exposed to market risk. Support this thought with only two principles of finance

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