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Suppose a share in CFM Incorporated is expected to be worth $50 in three years time. The expected return on the market portfolio is 8%

Suppose a share in CFM Incorporated is expected to be worth $50 in three years time. The expected return on the market portfolio is 8% per annum, the risk free rate is 5% per annum, and the beta of UWS Incorporated shares is 1.75. Assuming the CAPM is valid and that no dividends are expected to be paid over the next three years, how much should you be willing to pay for one CFM Inc. share now?

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