The Capital Asset Pricing Model (CAPM)includes which of the following in its base assumptions?
I.Investors should earn a minimum return equal to the risk-free rate.
II.Investors in the market should earn a return greater than the return on the overall market.
III.Investors should be rewarded for the amount of risk they assume.
IV.Investors should earn a return located above the Security Market Line.
A)I and III only
B)II and IV only
C)I, II and III only
D)I, III and IV only

Question

Quizplus · Accepted Answer

CAPM assumes that investors should earn a minimum return equal to the risk-free rate (I) and should be rewarded for the amount of risk they assume (III).

The Capital Asset Pricing Model (CAPM)includes Which of the Following