According to the capital asset pricing model, the required return by investors on a security is
A) inversely related to the risk-free rate.
B) inversely related to the firm's beta.
C) inversely related to the market return.
D) none of the above

Question

Quizplus · Accepted Answer

According to the capital asset pricing model (CAPM), the required return is directly related to the risk-free rate, the firm's beta, and the market return, not inversely.

According to the Capital Asset Pricing Model, the Required Return