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The CAPM computes expected rates of return on common equity capital using the following model: E[REj] = E[RF] + Bj x {E[RM] E[RF]} What are

The CAPM computes expected rates of return on common equity capital using the following model: E[REj] = E[RF] + Bj x {E[RM] E[RF]} What are the roles of each of the three components of this model?

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