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    Business
  3. Study Set
    Introduction to Corporate Finance
  4. Exam
    Exam 7: Risk,return,and the Capital Asset Pricing Model
  5. Question
    According to the CAPM (Capital Asset Pricing Model),the Security Market
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According to the CAPM (Capital Asset Pricing Model),the Security Market

Question 9

Question 9

Multiple Choice

According to the CAPM (capital asset pricing model) ,the security market line is a straight line.The intercept of this line should be equal to


A) zero
B) the expected risk premium on the market portfolio
C) the risk-free rate
D) the expected return on the market portfolio

Correct Answer:

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