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Anyone with experience using this CAPM Formula willing to share their experience and help?
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From our finance classes, the answer is to take the coupon rate of the 10 year bond. This is because of the idea we should be adopting something that is close to risk free. The market yield is not a good "close to risk free" instrument
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Billy
13 Jan 2020
Development & Acquisitions Manager at Real Estate Private Equity
For valuation taught in school, it would usually be the 10-year bond as the risk free rate. That's h...
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Textbook answer would be 10 years bond coupon rates.