What does a firms beta measure

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Given a firm beta of 1.4, does CAPM predict a firm expected return higher than the S&P500?

What does a firm's beta measure?

Given a risk-free rate of 1%, the S&P500 rate of return of 5%, and a beta of 1.4, what is the CAPM expected return?

What happens to the CAPM expected return if the beta increases? If the risk-free rate decreases? If the S&P500 expected return increases?

Reference no: EM13210790

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