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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.

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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. ( ) 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. ( )

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