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The Capital Asset Pricing Model: a.Requires you to predict future dividends to calculate required return b.Assumes market are efficient c.Is mostly used to price bonds
The Capital Asset Pricing Model:
a.Requires you to predict future dividends to calculate required return
b.Assumes market are efficient
c.Is mostly used to price bonds because they are more sensitive to interest rates
d.Would highlight arbitrage opportunities , which you can find good returns with no risk
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