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    Question

    What is the Capital Asset Pricing Model

    (CAPM)?
    A A method of measuring super profits Correct Answer Incorrect Answer
    B A model used to determine the cost of equity Correct Answer Incorrect Answer
    C A model used to determine a company's break-even point Correct Answer Incorrect Answer
    D A method of calculating earnings per share Correct Answer Incorrect Answer

    Solution

    The Capital Asset Pricing Model (CAPM) is a model used to determine the cost of equity, which is often used in valuation methods such as determining the value of a company's shares.

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