Multiple Choice
The capital asset pricing model (CAPM) assumes which of the following?
I.a risk-free asset has no systematic risk.
II.beta is a reliable estimate of total risk.
III.the reward-to-risk ratio is constant.
IV.the market rate of return can be approximated.
A) I and III only
B) II and IV only
C) I, III, and IV only
D) II, III, and IV only
E) I, II, III, and IV
Correct Answer:
Verified
Correct Answer:
Verified
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