According to the CAPM, the Required Rate of a Return

question 32

True/False

According to the CAPM, the required rate of a return on a stock can be estimated using only beta and the risk-free rate.

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Definitions:

Dependent

Reliant on something else for support, sustenance, or supply.

Explanation

The act of making something clear or understandable by providing information or reasons.

Argument

A set of statements structured to support a conclusion through reasoning.

Earth Spinning

The rotation of the Earth on its axis, causing the cycle of day and night.