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This question has 2 parts. Each part is independent. a. There are three components in the CAPM (Capital Asset Pricing Model). Describe each component and

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This question has 2 parts. Each part is independent. a. There are three components in the CAPM (Capital Asset Pricing Model). Describe each component and explain its role in determining the expected return. (2 marks) b. One industry with a high degree of operating leverage is the automobile manufacturing industry. Why does this industry have a high degree of operating leverage? (2 marks)

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