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The 10-year bond yield issued by the Singapore Government has been increasing consistently over the last three years, from 0.84% in 2020, to 1.67% in
The 10-year bond yield issued by the Singapore Government has been increasing consistently over the last three years, from 0.84% in 2020, to 1.67% in 2021 and 3.09% in 2022. Examine the implications of the expected return on stocks using the capital asset pricing model in the current economic environment (in Singapore's current economic context). Justify using the CAPM equation. (15 marks).
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