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    Community: Investing Wiki

    Term Of The Hour

    capital asset pricing: Original post by C. Taylor of Demand Media A stock's required rate of return on equity calculates the expected return with respect to how risky the stock is as an investment. The riskiness of the stock is offered by its beta value, which compares it to the overall market. The market uses a beta value of 1, so any value greater than that is more risky and should offer a higher return to compensate…

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