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  3. Study Set
    The Economic Analysis of Public Policy
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    Exam 9: Risk and Uncertainty
  5. Question
    According to the Capital Asset Pricing Formula, If the Risk
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According to the Capital Asset Pricing Formula, If the Risk

Question 2

Question 2

Multiple Choice

According to the Capital Asset Pricing Formula, if the risk free rate is 3%, the market rate of return is 6%, and Beta = .6, what is the required rate of return on the asset?


A) 4.8%
B) 6%
C) 3.6%
D) 3%

Correct Answer:

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