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Using the information from stock symbol CVS, answer the following questions using market value analysis: Assuming a 5% historical risk free rate of return, and
Using the information from stock symbol CVS, answer the following questions using market value analysis:
Assuming a 5% historical risk free rate of return, and a 10% market return, answering the following?
What is the market expected risk premium?
Using Capital Asset Pricing Model (CAPM), what is the expect companys risk premium?
How this expected return compares to the other ROEs?
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