Multiple Choice
The capital asset pricing model is given by R - RF = α + β(RM - Rf) + ε,where RM = expected return on the market,Rf = risk-free market return,and R = expected return on a stock or portfolio of interest.The response variable in this model is ________.
A) R
B) R - Rf
C) RM
D) RM - Rf
Correct Answer:
Verified
Correct Answer:
Verified
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