From CAPM the risk free rate is probably the most second important factor. The bigger the difference in the risk premium the greater the expected return. Since the risk free rate changes constantly, you need to pay close attention in case the risk premium becomes negative. When this happens it is better to invest in a risk free asset such as a bond instead of taking a risk and potentially never regain your money. Just remember to buy low and sell high, to possibly see immediate gains from you investment.
E(Ri)= b(rm-rf)+rf
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