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Use the following information to answer questions 3 to 4. Which of the f...
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Use the following information to answer questions 3 to 4.
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Expected rate of return
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CAPM required rate of return
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FF required rate of return
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Share 1
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0.23
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0.19
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0.20
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Share 2
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0.10
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0.12
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0.12
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Share 3
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0.08
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0.15
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0.08
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Which of the following statements are most likely correct? Based on CAPM, security 1 is …, while security 3 is ….
Security 1 Security 3
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