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Suppose that the market can be described by the following three sources of systematic risk with associated risk premiums. The return on a particular stock

image text in transcribed Suppose that the market can be described by the following three sources of systematic risk with associated risk premiums. The return on a particular stock is generated according to the following equation: r=15%+1.0I+.5R+.75C+e Suppose that the market can be described by the following three sources of systematic risk with associated risk premiums. The return on a particular stock is generated according to the following equation: r=15%+1.0I+.5R+.75C+e

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