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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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