What Are the Two Components of Expected Return in the CAPM

question 5

Essay

What are the two components of expected return in the CAPM?

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Definitions:

Tender Offer

A type of takeover in which the aggressor corporation offers the target shareholders a price above their stock’s current market value.

Market Value

The estimated price at which a good or service would trade in a competitive marketplace.

Board of Directors

A group of individuals elected by shareholders to oversee the management and make major decisions for a corporation.

Officer

An individual holding a position of authority or command, especially within a governmental, military, or corporate structure, responsible for enforcing laws or policies.