To Estimate the Required Return for a Security Using APT

question 1

Multiple Choice

To estimate the required return for a security using APT or CAPM, it is necessary to have:

• A) last period's return, beta, and the standard deviation.
• B) last period's return, beta, and the risk-free rate.
• C) beta, the market risk premium, and the risk-free rate.
• D) beta, last period's return, and the standard deviation.
• E) beta, last period's return, and the market risk premium.