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The CAPM

Question 40

Multiple Choice

The CAPM:


A) uses the risk free rate of return and the efficient market portfolio to estimate risk.
B) considers the sensitivity of a stock to different risk factors to calculate risk.
C) uses the expected return on a given security to determine its overall risk.
D) measures the amount of unsystemic risk to determine the expected return of a stock
E) All of these answers are correct

Correct Answer:

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