I have noticed some inconsistencies in the formula calculation in the bpp revision kit. In some answers they multiply the beta by the risk premium without deducting the risk free rate and in others they do deduct the risk free rate. It is rather confusing? I know in the lectures John specifically deducts it and the formula clearly tells us to do as much.
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CAPM formula
5y ago#1You have asked this question in the other forum as well. I have answered it there :-)
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