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Explain the CAPM model. The text provides a list of betas for a selection of stocks. Choose two firms( Apple and Coca-Cola) from that list

Explain the CAPM model. The text provides a list of betas for a selection of stocks.

Choose two firms( Apple and Coca-Cola) from that list and discuss whether the betas are what you would expect. Be sure to explain why or why not.

Calculate the returns based on the CAPM model. Be sure to state your assumptions

Stock (Ticker Symbol)

Value Line

Yahoo! Finance

Apple (AAPL)

0.95

1.34

Coca-Cola (KO)

0.7

0.63

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