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Investors need to know how much risk they have to take to confidently expect a certain percentage return. Likewise, managers want to know what return
Investors need to know how much risk they have to take to confidently expect a certain percentage return. Likewise, managers want to know what return shareholders require so that they can decide how to meet those expectations. Respond to the following in a minimum of 175 words: - Select 2-3 of the topics below and discuss how they each influence financial decisions regarding risk and return: - The capital asset pricing model (CAPM) - The constant-growth model - Compute forward-looking expected return and risk - Risk premiums
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