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Estimating the Rate of Return for Any Portfolio Lying on the Security

Question 45

Multiple Choice

Estimating the rate of return for any portfolio lying on the security market line requires which of the following?


A) Market rate of return and the portfolio beta
B) Market rate of return,market beta,and the risk-free rate
C) Risk-free rate,factor beta,and the industry beta
D) Factor beta and the market risk premium
E) Portfolio beta,the risk-free rate,and the market risk premium

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