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Given the following information: Expected Return on Stock Market -15% Treasury Bill return - 3% Inflation - 5% Treasury Bonds - 6% What would be
Given the following information: Expected Return on Stock Market -15% Treasury Bill return - 3% Inflation - 5% Treasury Bonds - 6% What would be the CAPM predicted returns of the following: 1) A stock with a Beta - 1 2) A stock with a Beta - 2 ance 3) A stock with a Beta - 6 4) A stock with a Beta-2 Make sure to note the negative sign)
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