Multiple Choice
The risk-free rate and the expected market rate of return are 0.06 and 0.12, respectively. According to the capital asset pricing model (CAPM) , the expected rate of return on security X with a beta of 1.2 is equal to
A) 0.06.
B) 0.144.
C) 0.12.
D) 0.132.
E) 0.18.
Correct Answer:
Verified
Correct Answer:
Verified
Q13: Security A has an expected rate of
Q15: In a well-diversified portfolio,<br>A) market risk is
Q16: According to the Capital Asset Pricing Model
Q17: As a financial analyst, you are tasked
Q17: One of the assumptions of the CAPM
Q18: The risk-free rate and the expected market
Q21: The security market line (SML)<br>A) can be
Q21: The market risk, beta, of a security
Q60: A "fairly-priced" asset lies<br>A) above the security-market
Q78: The risk-free rate is 4%. The expected