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Question No 1 (i) CAPM predicts that the risk premium increase in proportion to beta of a security. Justify this statement using Figures. (ii) Explain

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Question No 1 (i) CAPM predicts that the risk premium increase in proportion to beta of a security. Justify this statement using Figures. (ii) Explain why the CAPM is a practical way to price risky assets. (iii) Discuss about advantages of thethree different valuation methods (WACC, APV, and FTE). (iv) Proposed purchase price was $150 million. Assess whether the valuation results make sense

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