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CAPM
K = Rf = beta (Rm Rf)
Rf= return on the non-risk asset (like the german bond)
Rm = expected return of the market
Beta= coefficient
K = return of the non-risk asset + risk premium
23/9/16
Exam question:
The IRR :
doesnt depend on our profitability expectations or requirements
A negative IRR doesnt mean that the inv project will have losses
It doesnt depend of the exp cash flows