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 portfolio has 40% invested in Asset
Q2: Suppose David can borrow and lend at
Q3: The CAPM (capital asset pricing model)assumes that:
A)
Q4: Suppose Sarah can borrow and lend at
Q6: A particular asset has a beta of
Q7: The stock of Alpha Company has an
Q8: A particular stock has an expected return
Q9: The risk-free rate is 5% and the
Q10: A particular stock has an expected return
Q11: The stock of Alpha Company has an
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