In the , the Expected Return on a Security Is

Multiple Choice

In the , the expected return on a security is equal to the risk-free rate plus a single risk premium that is equal to the product of the expected rate of return on the market portfolio less the risk-free rate times the sensitivity of the security's returns to the market return.

A) Arbitrage Pricing Theory
B) Capital Asset Pricing Model
C) Dividend Valuation Model
D) Risk Premium on Debt Model