Question about capital asset pricing model

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Can you help me to understand what are the critical assumptions in the Capital Asset Pricing Model (CAPM)? How do these affect its validity as a way to estimate equity cost of capital?

Reference no: EM1333128

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Question about capital asset pricing model : What are the critical assumptions in Capital Asset Pricing Model (CAPM)? How do these affect its validity as a way to estimate equity cost of capital?
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