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In Chapter 17, we introduced the cost of capital in an international setting. Use a numerical example of your own to show how to apply
In Chapter 17, we introduced the cost of capital in an international setting. Use a numerical example of your own to show how to apply CAPM in two different settings: a closed (isolated) economy setting, and an economy fully integrated with the world setting. The numbers in your example should be different from what we introduced in class. (20 points)
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