Define the capm formula including naming each of the


1) Define the CAPM formula including naming each of the elements in the Formula and how it is applied to the valuation of a stock.

2) Assume the following and calculate the Discount Rate for Wells Fargo stock using the CAPM : Risk Free Rate = 3.2% Market Rate = 10.0% Wells Fargo Estimated BETA = 1.25 Please list your calculations/work.

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Financial Management: Define the capm formula including naming each of the
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