Multiple Choice
Which of the following is a FALSE statement of the market price of risk?
A) It is the incremental risk divided by the incremental expected return.
B) It is the slope of the capital market line.
C) It is the equilibrium price of risk in the capital market.
D) It indicates the additional expected return that the market demands for an increase in a portfolio's risk.
Correct Answer:
Verified
Correct Answer:
Verified
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