What is the prediction of the CAPM with respect to the expected return on any security?
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Expected Return
The expected return is the profit or loss an investor anticipates on an investment that has known or anticipated rates of return (RoR). It is calculated by multiplying potential outcomes by the chances of them occurring and then totaling these...
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The CAPM implies that the expected return of any security equals the riskfree rat...View the full answer
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Related Book For
International Financial Management
ISBN: 978-0132162760
2nd edition
Authors: Geert Bekaert, Robert J. Hodrick
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