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According to the Capital Asset Pricing Model (CAPM), the Expected $\beta$

Question 32

Multiple Choice

According to the Capital Asset Pricing Model (CAPM) , the expected rate of return on any security is equal to

A) R_f+ $\beta$ [E(R_M) ].
B) R_f+ $\beta$ [E(R_M) -R_f].
C) $\beta$ [E(R_M) -R_f].
D) E(R_M) +R_f.

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