How are the sml and the capm related


Question 1. How are the SML and the CAPM related (Draw the appropriate graphs and explain)?

Question 2. A stock's current dividends are $1.50 and its expected to grow at 10 percent annually. Suppose its required rate of return equals 15 percent. The stock's recent market price is $120. What is its intrinsic value? Would you invest in the stock using fundamental analysis?

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Finance Basics: How are the sml and the capm related
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