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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
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 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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