Multiple Choice
The Capital Asset Pricing Model (CAPM) includes which of the following in its base assumptions?
I.Investors should earn a minimum return equal to the risk-free rate.
II.Investors in the market should earn a return greater than the return on the overall market.
III.Investors should be rewarded for the amount of risk they assume.
IV.Investors should earn a return located above the Security Market Line.
A) I and III only
B) II and IV only
C) I, II and III only
D) I, III and IV only
Correct Answer:

Verified
Correct Answer:
Verified
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