According to the Capital Asset Pricing Model, a Stock's Risk

Multiple Choice

According to the Capital Asset Pricing Model, a stock's risk premium is the:

A) price premium on low risk stocks that investors buy for safety.
B) risk premium on an average stock factored by a measure of the stock's market risk.
C) risk premium on an average stock factored by a measure of the stock's total risk.
D) extra money paid for high risk stocks because of their high average returns.