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The capital assets pricing model (CAPM) tells us that in an efficient and fair capital market, the expected return on an asset only depends on

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The capital assets pricing model (CAPM) tells us that in an efficient and fair capital market, the expected return on an asset only depends on its: a. Total risk. b. Systematic risk. c. Unsystematic risk. d. No risk. The CAPM shows that the expected return for a particular asset depends on the following factors except: a. Market risk premium. b. The pure time value of money. c. The amount of unsystematic risk. d. The amount of systematic risk. Obi-Wan's common stock has a beta of 1.4. If the risk-free rate is 3 percent and the market risk premium is 15 percent, what is Obi-Wan's of equity? a. 16.80% b. 19.80% c. 21.00%. d. 24.00% Yoda Co.'s most recent dividend was $1.50 per share, and dividends are expected to grow at a 5 percent annual rate indefinitely The stock sells for $30 per share What is Yoda's cost of equity? a. 10.00% b. 10.25%. c. 11.00%. d. 11.25%

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