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Which of the following is NOT true? CAPM model is compatible with the M&M perfect-market proposition If the bank demand an interest rate that is

Which of the following is NOT true? CAPM model is compatible with the M&M perfect-market proposition If the bank demand an interest rate that is higher than the expected cost of capital on the equity, it means that the cost of debt capital is higher than that of equity capital A firm taking on more implies that both debt and equity become riskier

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