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2. According to the Capital Asset Pricing Model, the expected return on a risky asset depends on three components. Describe each component and explain how

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2. According to the Capital Asset Pricing Model, the expected return on a risky asset depends on three components. Describe each component and explain how each is determined [Ch 12] 3. Explain the relationship between the weighted average cost of capital (WACC), the maximization of firm value, and financial decision making

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