Multiple Choice
Which of the following is the correct calculation for the required return under the CAPM?
A) Beta × (market risk premium)
B) Beta + market risk premium
C) Risk-free rate + risk premium
D) Risk-free rate × (market risk premium)
Correct Answer:

Verified
Correct Answer:
Verified
Related Questions
Q12: Using the separation theorem, it is necessary
Q13: The expected market return is 9 percent.
Q14: The beta of HSR's stock is 1.15,
Q15: In a declining market, a portfolio manager
Q16: What are the assumptions in the CAPM?
Q18: For the past two quarters the risk-free
Q19: What is the formula for the slope
Q20: Which of the following is not one
Q21: Most professional investors use the S&P 500
Q22: Based on the CAPM, would you expect