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Q1. (a). What is capital asset pricing model (CAPM) (41 (b). Distinguish between systematic risk and unsystematic risk and give one example each. (C). Differentiate

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Q1. (a). What is capital asset pricing model (CAPM) (41 (b). Distinguish between systematic risk and unsystematic risk and give one example each. (C). Differentiate between a nominal annual rate and an effective annual rate (EAR). (d). Calculate the required rate of return for an asset that has a beta of 1.8, given a risk-free rate of 5% and a market return of 10%

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