Multiple Choice
The risk-free rate and the expected market rate of return are 0.06 and 0.12, respectively.According to the capital asset pricing model (CAPM) , the expected rate of return on security X with a beta of 1.2 is equal to
A) 0.06.
B) 0.144.
C) 0.12.
D) 0.132.
Correct Answer:
Verified
Correct Answer:
Verified
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