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Assume CAPM is true. Also assume that when the stock market rises by 2%, we expect Apple to rise by 5%. If the market fell

  1. Assume CAPM is true. Also assume that when the stock market rises by 2%, we expect Apple to rise by 5%. If the market fell 3% today, what is the expected Apple performance?

    -9%

    5%

    -7.5%

    -3%

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