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Consider the equation for the Capital Asset Pricing Model (CAPM): r^i=rRF+(r^MrRF)2MCov(ri,rM) In this equation, the term (r^MrRF)2MCov(ri,rM) represents the stock's unsystematic risk Suppose that the

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Consider the equation for the Capital Asset Pricing Model (CAPM): r^i=rRF+(r^MrRF)2MCov(ri,rM) In this equation, the term (r^MrRF)2MCov(ri,rM) represents the stock's unsystematic risk Suppose that the market's average excess return on stocks is 10.01 ing table by computis expected returns to stocks for each beta coefficient using the Capit

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