
According to CAPM, the amount of reward an investor receives for bearing the risk of an individual security depends upon the:
A) amount of total risk assumed and the market risk premium.
B) market risk premium and the amount of systematic risk inherent in the security.
C) risk-free rate, the market rate of return, and the standard deviation of the security.
D) beta of the security and the market rate of return.
E) standard deviation of the security and the risk-free rate of return.
Correct Answer:
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