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a ) Fill in the missing values in the table. b ) Suppose you believe that the CAPM is the right model for the expected
aFill in the missing values in the table.
bSuppose you believe that the CAPM is the right model for the expected return. Is the expected return of firm A correct in the table? Suppose you purchased stock A expecting expected return of Suppose also that all the future forecasts remain the same. Based on the correct expected return calculated from the CAPM, you will buy more of stock A or sell it Explain.
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