The CAPM Expected Rate of Return Is Equal to the

question 45

Multiple Choice

The CAPM expected rate of return is equal to the

• A)time premium plus the default premium.
• B)default premium plus the expected risk premium.
• C)time premium plus the expected risk premium.
• D)time premium plus the default premium plus the expected risk premium.

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Definitions:

Diverting

The act of changing the direction or use of something from its intended course or purpose.

Water

is a transparent, tasteless, odorless, and nearly colorless chemical substance that is the main constituent of Earth's hydrosphere and the fluids of most living organisms.

Marketable Title

Title for property to which the seller has legal title and against which there are no liens or restrictions of which the buyer is not aware.

Lien

A claim to property.