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    Principles of Corporate Finance Study Set 3
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    Exam 9: Risk and the Cost of Capital
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    If One Uses a Long-Term Risk-Free Rate for the CAPM
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If One Uses a Long-Term Risk-Free Rate for the CAPM

Question 40

Question 40

True/False

If one uses a long-term risk-free rate for the CAPM instead of a short-term risk-free rate, then one will generate a flatter security market line.

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