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Question about CAPM (capital asset pricing model) I believe I am misunderstanding something I thought cost of capital = Risk Free Rate + Beta *
Question about CAPM (capital asset pricing model)
I believe I am misunderstanding something
I thought
cost of capital = Risk Free Rate + Beta * (Return on Market Portfolio)
risk premium for security = Risk Free Rate + Beta * (Return on Market Portfolio) - risk free rate
Is this the correct way to view the CAPM?
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