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What is the formula of CAPM?  ​ Explain the meaning of the formula. give an example

What is the formula of CAPM?  ​
Explain the meaning of the formula.

give an example

Solutions

Expert Solution

--> What is the formula of CAPM?

Ra = Rrf + [Ba (Rm - Rrf)]

Ra = Expected return on a security
Rrf = Risk-free rate
Ba = Beta of the security
Rm = Expected return of the market

Thanks, thumbs up :)

jeff jeffy answered 1 year ago
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