According to the CAPM (capital asset pricing model) ,what is the single factor that explains differences in returns across securities?
A) the risk-free rate
B) the expected risk premium on the market portfolio
C) the beta of a security
D) the expected return on the market portfolio
E) the volatility of a security
Correct Answer:
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Q1: A particular stock has an expected return
Q2: A particular stock has an expected return
Q3: If the market portfolio has an expected
Q4: According to the CAPM (capital asset pricing
Q5: A particular stock has a beta of
Q7: Suppose Sarah can borrow and lend at
Q8: According to the CAPM (capital asset pricing
Q9: A particular asset has a beta of
Q10: The risk-free rate is 5% and the
Q11: The CAPM (capital asset pricing model)assumes that:
A)
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