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Unformatted text preview: Capital asset pricing model Weighted average- weighting plus something to get a combination Ex) stock or bond portfolio – in a total portfolio Chapter 12 Discussion on beta Cap formula – measures expected return of a particular company R(company) = (2 or 3 %) + Beta (risk premium) Weighted average of the capital P.372 example wakes equity 86% of capital 20:52 20:52...
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- Spring '12
- Capital Asset Pricing Model, 3 %, 86%, Weighted average weighting