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    Price Theory and Applications
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    Exam 18: Risk and Uncertainty
  5. Question
    The Key Assumption of the Capital Asset Pricing Model Is
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The Key Assumption of the Capital Asset Pricing Model Is

Question 61

Question 61

Multiple Choice

The key assumption of the capital asset pricing model is that an investor cares only about his portfolio's


A) degree of diversification.
B) expected income.
C) level of risk.
D) expected return and standard deviation.

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