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The rate of return on short - term government securities ( percived to be risk - free ) was about 5 % . Suppose the

The rate of return on short-term government securities (percived to be risk-free) was about 5%. Suppose the expected rate of return required by the market portfolio is 12%. According to CAPM what is the expected rate of return on the market portfolio. suppose you consider buying a share of stock at $40. the stock is expected to pay $3

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