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Using the Capital Asset Pricing Model, the required rate of return for an individual stock is equal to: Risk free rate plus the market premium
Using the Capital Asset Pricing Model, the required rate of return for an individual stock is equal to:
Risk free rate plus the market premium minus the Beta coefficient. | ||
Risk free rate plus the market premium divided by the Beta coefficient. | ||
Risk free rate plus the market premium times the Beta coefficient. | ||
Risk free rate plus the market premium plus the Beta coefficient. |
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