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According to the Capital Asset Pricing Model (CAPM), _____

Question 8

Multiple Choice

According to the capital asset pricing model (CAPM) , _____. 


A) investors should expect to be rewarded for the total risk associated with an individual investment, which is measured by the standard deviation of returns on the investment
B) investors should expect to be rewarded for only the unsystematic risk associated with an individual investment, which is measured by the standard deviation of returns
C) investors should expect to be rewarded only for the systematic risk associated with an individual investment, which is measured by the standard deviation of returns
D) investors should expect to be rewarded for only the unsystematic risk associated with an individual investment, which is measured by the beta coefficient
E) investors should expect to be rewarded for only the systematic risk associated with an individual investment, which is measured by the beta coefficient

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