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Ri = [Rf + ((Rm Rf) x Bi)] Please define and explain the following components: Ri Rf (Rm Rf) Bi What does the CAPM tell
Ri = [Rf + ((Rm Rf) x Bi)]
Please define and explain the following components:
- Ri
- Rf
- (Rm Rf)
- Bi
What does the CAPM tell us about the required return on a risky investment?
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