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Use the Following Model to Estimate the Expected Equity Returns

Question 77

Essay

Use the following model to estimate the expected equity returns on the stock. Use the following model to estimate the expected equity returns on the stock.   -Explain why growth mutual funds are worse investments than taking out a second mortgage on a home and investing in the market index.
-Explain why growth mutual funds are worse investments than taking out a second mortgage on a home and investing in the market index.

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The growth mutual fund is usually riskie...

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