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Find the expected rate of return for NIKE stocks based on the CAPM. When doing so, assume a reasonable risk-free rate, and the expected rate
Find the expected rate of return for NIKE stocks based on the CAPM. When doing so, assume a reasonable risk-free rate, and the expected rate of the market portfolio, and you can find the beta of your stock in one of the financial websites including finance.yahoo.com.
Do you think the expected return of your stock predicted by CAPM is a reasonable one? What assumptions of the CAPM make the prediction unstable or vulnerable?
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