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The CAPM shows that the expected return for an asset depends on three things: I. the risk-free rate of return II. the reward for bearing
The CAPM shows that the expected return for an asset depends on three things:
I. the risk-free rate of return
II. the reward for bearing idiosyncratic risk
III. the amount of systematic risk
IV. the reward for bearing systematic risk
V. the reward for bearing unique risk
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