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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: A. difference between the
If the CAPM is used to estimate the cost of equity capital, the expected excess market return is equal to the:
A. | difference between the return on the market and the risk-free rate. | |
B. | beta times the market risk premium. | |
C. | market rate of return. | |
D. | beta times the risk-free rate. | |
E. | return on the stock minus the risk-free rate. |
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