In the Equation K_j = R_f + ß_j (R_m -

question 83

Multiple Choice

In the equation K_j = R_f + ß_j (R_m - R_f) :

• A) R_f is the return expected in the future.
• B) R_f is the return expected on a corporate AAA bond.
• C) R_f is the risk free rate of interest represented by a Canadian government treasury bill.
• D) R_f is a risk premium expected over the market return.

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