According to the Capital Asset Pricing Model (CAPM), the Expected

question 41

Multiple Choice

According to the Capital Asset Pricing Model (CAPM) , the expected rate of return on any security is equal to

• A) R_f + β [E(R_M)].
• B) ​R_f + β [E(R_M) −R_f].
• C) β [E(R_M) −R_f].
• D) E(R_M) + R_f.

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