According to the CAPM model, the cost of eqiIity is represented by :
Where Rm indicate market rate of return, Rf idicates risk free rate of return and βj ,indicates beta of stock J| A. | Rm + (Rm - Rf) βj |
| B. | Rf + (Rm - Rf) βj |
| C. | βj + (Rm - Rf) Rm |
| D. | Rm+Rf +βj |
Answer : B Explanation : |
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Option: A Explanation : Explanation will come here. Explanation will come here. Explanation will come here. Explanation will come here. Explanation will come here. |
