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The following is the market risk premium, beta, and expected return on an asset. Determine whether CAPM seems to hold or not: a. Risk Premium=8%,
The following is the market risk premium, beta, and expected return on an asset. Determine whether CAPM seems to hold or not:
a. Risk Premium=8%, = 1.2, Expected return = 12%
b. Risk Premium=8%, = 0.8, Expected return = 6%
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