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CAPM: The risk-free rate is 2%, Beta=1.6 and return to the market is 5% Calculate excess return to the market Calculate the required return on

CAPM: The risk-free rate is 2%, Beta=1.6 and return to the market is 5%

Calculate excess return to the market

Calculate the required return on equity

What does a lower number mean vs a higher return on equity?

No spreadsheet, worked out

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