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    Exam 9: Risk and Return Theories: II
  5. Question
    The Capital Asset Pricing Model States That the Expected Return
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The Capital Asset Pricing Model States That the Expected Return

Question 1

Question 1

Multiple Choice

The capital asset pricing model states that the expected return of a security is equal to the riskfree rate of return plus:


A) Beta.
B) A risk premium.
C) The market risk premium.
D) The market price of risk.
E) None of the above.

Correct Answer:

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