When Using the Empirical Approach,rather Than a Risk-Based Model,to Compute

Multiple Choice

When using the empirical approach,rather than a risk-based model,to compute an expected rate of return on a security,the beta values are replaced with:

A) the ratio of the market rate of return to the risk-free rate.
B) a singular value equal to the market-to-book value of the firm.
C) the firm's various attributes.
D) the ratio of the firm's historical average return to the risk-free rate.
E) the average standard deviation of the security's historical returns.