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if the average rate of return on the market increases over time, then: a. the risk free rate of return has to be decreasing over

if the average rate of return on the market increases over time, then:

a. the risk free rate of return has to be decreasing over time.

b. the beta for each firm will correspondingly decrease over time

c. the risk premium of the market is increasing

d. the CAPM will be less reliable as a predictor of investment returns

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