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In this equation, the term Cov r i , r M M 2 represents the Suppose that the market's average excess return on stocks is
In this equation, the term Cov represents the
Suppose that the market's average excess return on stocks is and that the riskfree rate is Complete the following table by computing expected returns to stocks for each beta coefficient using the Capital Asset Pricing Model CAPM:
tableExpected Return to Stocks grad
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