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its just true and fuls 1. The CAPM states that the expected risk premium on any security equals its beta times the market risk premium.
its just true and fuls
1. The CAPM states that the expected risk premium on any security equals its beta times the market risk premium. ( ) 2. Market risk premium is defined as the difference between the market rate of return and the return on risk-free Treasury bills. ( ) 3. A firm's cost of capital should be computed using the book weights of each financing source. ( 4. To a company, the cost of interest payments on its bonds is reduced by the amount of tax savings generated by that interest. ( ) Step by Step Solution
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