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The Capital Asset Pricing Model (CAPM) asserts that an asset’s expected return is equal to the risk-free rate plus a risk premium for:   a. Volatility   b. Systematic risk   c. Non-systematic risk   d. Diversification   e. Marginal utility of consumption

The Capital Asset Pricing Model (CAPM) asserts that an asset’s expected return is equal to the risk-free rate plus a risk premium for:   a. Volatility   b. Systematic risk   c. Non-systematic risk   d. Diversification   e. Marginal utility of consumption

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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  1. The Capital Asset Pricing Model (CAPM) asserts that an asset’s expected return is equal to the risk-free rate plus a risk premium for:

      a.

    Volatility
      b.

    Systematic risk
      c.

    Non-systematic risk
      d.

    Diversification
      e.

    Marginal utility of consumption
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