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    Foundations of Financial Management Study Set 3
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    Exam 11: Cost of Capital
  5. Question
    Within the Capital Asset Pricing Model
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Within the Capital Asset Pricing Model

Question 1

Question 1

Multiple Choice

Within the capital asset pricing model


A) the risk-free rate is usually higher than the return in the market.
B) the higher the beta the lower the required rate of return.
C) beta measures the volatility of an individual stock relative to a stock market index.
D) two of the above are true.

Correct Answer:

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