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CAPM For Personal Investment Decisions

Would you ever use CAPM to make personal investment decisions? Why or why not?

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Step 1
I will make use of CAPM to make a personal investment decisions. The formula of CAPM considers the relationship between risk and expected return. The CAPM formula is useful in pricing of stocks. The CAPM formula gives the me the expected return of a security. If the expected return is not equal to or is higher than the required return, I disregard ...

Solution Summary

This posting gives you a step-by-step explanation of relationship between risk and return . The response also contains the sources used.

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