The ________ holds that it is the covariance of an asset's return with that of the market portfolio that determines the asset's risk premium.

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The Capital Asset Pricing Model (CAPM) is a widely used finance theory that describes the relationship between expected return and risk of an individual security, in this case, an asset. The model proposes that the risk premium of an asset is determined by the covariance of its return with the return of the market portfolio, and not by its total risk.

The ________ Holds That It Is the Covariance of an Asset's