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    Financial Management Principles and Applications Study Set 2
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    Exam 8: Risk and Return-Capital Market Theory
  5. Question
    The Security Market Line Intercepts the Vertical Axis at
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The Security Market Line Intercepts the Vertical Axis at

Question 15

Question 15

Multiple Choice

The Security Market Line intercepts the vertical axis at


A) beta = 1.
B) the risk-free rate.
C) the market risk premium.
D) the expected return on asseti equals the expected rate of return on the market portfolio.

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