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Financial management 4 If the CAPM is used to estimate the cost of equity capital, the expected excess market return is equal to the: O

Financial management 4

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If the CAPM is used to estimate the cost of equity capital, the expected excess market return is equal to the: O 1) Beta times the risk-free rate. Q 2) Beta times the market risk premium. O 3) Return on the stock minus the risk-free rate. Q 4) Market rate of return.

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