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

Question 41

Multiple Choice

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


A) Rf + β [E(RM) ].
B) ​Rf + β [E(RM) −Rf].
C) β [E(RM) −Rf].
D) E(RM) + Rf.

Correct Answer:

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