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Pure time value of money Measured by the risk-free rate Greater impatience higher/lower expected return? Amount of systematic risk taken Measured by beta Greater systematic
Pure time value of money Measured by the risk-free rate Greater impatience higher/lower expected return?
Amount of systematic risk taken Measured by beta Greater systematic risk higher/lower expected return?
Investors risk aversion Measured by the market risk premium (reward for bearing the market risk) More risk aversion higher/lower expected return?
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