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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:

 

  1. 1) How does the Capital asset pricing model (CAPM) influence financial decisions regarding risk and return? 
  2. 2) How does risk premiums influence financial decisions regarding risk and return? 

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