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Capital Asset Pricing Model A model linking price and required returns. A model based on the proposition that any stock s required rate of return

Capital Asset Pricing Model A model linking price and required returns. A model based on the proposition that any stock s required rate of return is equal to the risk free rate of return plus a risk premium that reflects only the risk remaining after diversification. A model which describes the price of an asset based on its total risk. A model that relates a stock's required return to its price and dividend payments. None of the above.

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