Used to estimate the cost of equity capital

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Reference no: EM13767944

If the CAPM is used to estimate the cost of equity capital, the expected excess market return is equal to

Select one:

a. return on the stock minus the risk-free rate.

b. difference between the return on the market and the risk-free rate.

c. beta times the market risk premium.

d. beta times the risk-free rate.

e. market rate of return.

Reference no: EM13767944

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