Professional Documents
Culture Documents
Usefulness of Accounting Information To Investors and Creditors
Usefulness of Accounting Information To Investors and Creditors
Return on Market
Characteristic Line
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Rj = i + Bj (Rm – i)
Rj = expected return on security j
i = risk-free rate of return
Rm = expected return on the market portfolio
Rj = j + Bj (Rm) + ej