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In a Competitive Market the Reward to Risk Ratio Can

Question 174

Multiple Choice

In a competitive market the reward to risk ratio can be expressed as:


A) [E(RA) - Rf]/ßa> [E(RB) - Rf]/ßb
B) [E(RA ) - Rf]/ßa = [E(RB) - Rf]/ßb
C) [E(RA) - Rf] = ßa
D) E(RA) = E(Rb)
E) E(RA) - E(RB) = Rf

Correct Answer:

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