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In regards to the CAPM pricing model, what happens if one variable is changed? What way does...

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Finance

Inregards to the CAPM pricing model, what happens if one variable ischanged? What way does the risk premium, risk free rate, and betamove? Explain why.

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CAPM is given by cost of equity riskfree rate betamarket return riskfree rate If any of the variables are changed in the CAPM equation the cost of equity will also changeIf beta increases then cost of equity increases and if beta decreases cost of equity decreases    See Answer
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Inregards to the CAPM pricing model, what happens if one variable ischanged? What way does the risk premium, risk free rate, and betamove? Explain why.

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