Recently, equity returns have been lower than the returns available from short-term government securities. Clearly, in such
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‘Recently, equity returns have been lower than the returns available from short-term government securities. Clearly, in such a period, the capital asset pricing model doesn’t work because equity returns are supposed to be more than the risk-free rate.’
Is this statement correct? Explain.
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The statement is not necessarily correct While the Capital Asset Pricing Model CAPM suggests that eq...View the full answer
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Jinah Patricia Padilla
Had an experience as an external auditor in Ernst & Young Philippines and currently a Corporate Accountant in a consultancy company providing manpower to a 5-star hotel in Makati, Philippines, Makati Diamond Residences
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