The Capital Asset Pricing Model (CAPM) Is a Mathematical Model

question 2

Multiple Choice

The Capital Asset Pricing Model (CAPM) is a mathematical model that depicts the

• A) positive relationship between risk and return.
• B) standard deviation between a risk premium and an investment's expected return.
• C) exact price that an investor should be willing to pay for any given investment.
• D) difference between a risk-free return and the expected rate of inflation.