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Discuss the Results of the Studies of John Lintner (1965)

question 16

Essay

Discuss the results of the studies of John Lintner (1965) and Merton Miller and Myron Scholes (1972) in terms of the validity of the capital asset pricing model (CAPM).


Definitions:

Subsidiary

A company that is completely or partly owned and partly or entirely controlled by another company, known as the parent company.

Assets

Resources controlled by a business from which future economic benefits are expected to flow to the business.

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