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Suppose you invested in stock WMT, which has following information: Beta = 0.85; risk-free rate = 4 percent; market rate of return = 12 percent.
Suppose you invested in stock WMT, which has following information: Beta = 0.85; risk-free rate = 4 percent; market rate of return = 12 percent. However, based on the stock price, this stock actually gives 12 percent return.
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To determine the expected return of the stock WMT we can use the capital asset pricing model CAPM wh...
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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
11th edition
324422870, 324422873, 978-0324302691
