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Explain the CAPM model. Choose two firms from the following list to G eneral Mills, The Hershey Company, Newmont Mining, Wal-Mart Stores, Clorox, Kroger, MCDonald's,

Explain the CAPM model. Choose two firms from the following list to General Mills, The Hershey Company, Newmont Mining, Wal-Mart Stores, Clorox, Kroger, MCDonald's, Procter & Gamble, Disney, Microsoft, Southwest Airlines, Starbucks and Cisco System and discuss whether the betas are what you would expect. Calculate the returns based on the CAPM model. What are the assumptions?

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