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    Introduction to Corporate Finance Study Set 3
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    Exam 9: The Capital Asset Pricing Model Capm
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    How Do You Explain a Stock That Earns a Rate
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How Do You Explain a Stock That Earns a Rate

Question 85

Question 85

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How do you explain a stock that earns a rate of return higher than the required rate of return as determined by the CAPM?

Correct Answer:

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The CAPM shows only the relationship bet...

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