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The CAPM Computes Expected Rates of Return on Common Equity

Question 11

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The CAPM computes expected rates of return on common equity capital using the following model: The CAPM computes expected rates of return on common equity capital using the following model: What are the roles of each of the three components of this model? What are the roles of each of the three components of this model?

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The first component (E[RF])re...

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