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Elaborate the definition of the CAPM and how it is used in finance. Explain the components of the CAPM, especially the relationship of beta and
Elaborate the definition of the CAPM and how it is used in finance. Explain the components of the CAPM, especially the relationship of beta and market, and how they are used to calculate the expected return on an investment. Draw a standard CAPM line and be sure to label all necessary components.
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