According to the Capital Asset Pricing Model (CAPM),which of the Following

question 21

Multiple Choice

According to the capital asset pricing model (CAPM) ,which of the following is true?

• A)The expected return on an asset is equal to the risk-free rate plus the amount of risk, beta, multiplied by the market risk premium.
• B)The expected return on an asset is equal to the market rate plus the amount of risk, beta, multiplied by the market risk premium.
• C)The expected return on an asset is equal to the risk-free rate plus the amount of risk, standard deviation, multiplied by the market risk premium.
• D)None of the above.

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