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Calculate the required rate of return for the stock

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Reference no: EM131774501

Problem - The Capital Asset Pricing Model (CAPM). The CAPM is the most-recognized model to explain stock price returns, and forms the foundation of Modern Portfolio Theory.

The CAPM is built on a single measure of risk that explains asset returns. What assumptions underlie the development of the CAPM? What are some critiques of the CAPM (French and Fama and Richard Roll authored studies)? Finally, calculate the required rate of return for the stock that you are tracking for this course.

Reference no: EM131774501

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