Multiple Choice
The capital asset pricing model (CAPM) states that:
A) The expected risk premium on an investment is proportional to its beta
B) The expected rate of return on an investment is proportional to its beta
C) The expected rate of return on an investment depends on the risk-free rate and the market rate of return
D) The expected rate of return on an investment is dependent on the risk-free rate
Correct Answer:
Verified
Correct Answer:
Verified
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