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1. In the CAPM (Capital Assets Pricing Model), the risk-free rate of return is generally indicated by which of the following securities: A)A Broad Based
1. In the CAPM (Capital Assets Pricing Model), the risk-free rate of return is generally indicated by which of the following securities:
A)A Broad Based Index
B)Treasury Notes
C)Treasury Bills
D)Commercial Paper
2. The DDM (Dividend Discount Model) is a way to compute today's stock price based on (discounting) future expected dividends.
True or False
3. What is the beta for a company with a 12% expected return, while treasury bills are yielding 5% and the market risk premium is 7%?
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