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Asked by vmessina1
The capital asset pricing model approach to equity valuation:...
The capital asset pricing model approach to equity valuation:
Single choice.
(2 Points)
- assumes a firm's future risks will be higher than its current risks.
- is dependent upon the unsystematic risk of a security.
- assumes the reward-to-risk ratio is constant.
- assumes the reward-to-risk ratio increases as beta increases.
- can only be applied to dividend-paying firms.
Answer & Explanation
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Answered by saksham_agrawal
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