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An advantage of the Security Market Line/Capital Asset Pricing Model (SML/CAPM) is it: It explicitly adjusts for systematic risk (beta). It only applies to companies
An advantage of the Security Market Line/Capital Asset Pricing Model (SML/CAPM) is it:
It explicitly adjusts for systematic risk (beta).
It only applies to companies paying dividends.
It is not applicable if dividends arent growing at a constant rate.
It does not consider risk.
It is sensitive to dividend growth rates.
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