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There are 2 basic discount rate models used to calculate firm-specific discount rates: Capital Asset...

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Finance

There are 2 basic discount rate models used to calculate firm-specific discount rates: Capital Asset Pricing Model and the Multifactor Model. Describe what the Beta in the CAPM represents and how it is calculated. (10 points) The beta we selected for the first stage of the model may be different than the calculated beta. Name 2 reasons someone would use a beta for the next 5 years that is different than the calculated Beta. (10 Points)

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