If the equation is the linear equation for the Security Market Line, what portion represents the market risk premium for a stock that does not have a beta of 1.0?
A) $ \beta_{\mathrm{i}} $
B) $ \left[\mathrm{E}\left(\mathrm{r}_{\mathrm{m}}\right)-\mathrm{rf}\right] $
C) $ r f $
D) $ \beta_{i} *\left[E\left(r_{m}\right)-r f\right] $

Question

If the equation  is the linear equation for the Security Market Line, what portion represents the market risk premium for a stock that does not have a beta of 1.0?
A) $ \beta_{\mathrm{i}} $ 
B) $ \left[\mathrm{E}\left(\mathrm{r}_{\mathrm{m}}\right)-\mathrm{rf}\right] $ 
C) $ r f $ 
D) $ \beta_{i} *\left[E\left(r_{m}\right)-r f\right] $

Quizplus · Accepted Answer

The Answer of If the equation  is the linear equation for the Security Market Line, what portion represents the market risk premium for a stock that does not have a beta of 1.0?
A) $ \beta_{\mathrm{i}} $ 
B) $ \left[\mathrm{E}\left(\mathrm{r}_{\mathrm{m}}\right)-\mathrm{rf}\right] $ 
C) $ r f $ 
D) $ \beta_{i} *\left[E\left(r_{m}\right)-r f\right] $

If the Equation Is the Linear Equation for the Security