According to the Capital Asset Pricing Model (CAPM),the Expected Rate

Multiple Choice

According to the Capital Asset Pricing Model (CAPM) ,the expected rate of return on any security is equal to

A) R_f + β[E(R_M) ].
B) R_f + σ[E(R_M) - R_f].
C) R_f + β[E(R_M) - R_f].
D) E(R_M) + R_f.
E) none of these.