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In this equation, the term (r^MrRF) represents the Suppose that the market's average excess return on stocks is 6.00% and that the risk-free rate is

image text in transcribed In this equation, the term (r^MrRF) represents the Suppose that the market's average excess return on stocks is 6.00% and that the risk-free rate is 2.00%. Complete the following table by computing expected returns to stocks for each beta coefficient using the Capital Asset Pricing Model (CAPM): Based on the CAPM and your calculations for the return to stocks, what does it mean when the coefficient bi>1 ? The stock is less volatile than the market. The stock's return correlates with the stock market as a whole. The stock is more volatile than the market

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