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The Market Risk Premium used in the CAPM model is derived from: the historical return on the firm's stock minus the current risk-free rate. the

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The Market Risk Premium used in the CAPM model is derived from: the historical return on the firm's stock minus the current risk-free rate. the historical return on the market (S&P 500) minus the current risk-free rate beta times the historical return on the firm's stock beta times the risk-free rate the historical return on the market (S&P 500) minus the historical return on US Treasury debt

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