According to CAPM, the expected rate of return of a portfolio with a beta of 1 0 and an alpha of 0 is a Between rM and rf b The risk free rate, rf c Icirc sup2 ( rM rf ) d The expected return on the market, rM The following table shows risk and return measures for twoportfolios Average Annual Rate ...

According to CAPM model Expected rate of return R ...

According to CAPM, the expected rate of return of a portfolio with a beta of 1.0 and

Question:

According to CAPM, the expected rate of return of a portfolio with a beta of 1.0 and an alpha of 0 is:
a. Between rM and rf .
b. The risk-free rate, rf.
c. Î²( rM - rf ).
d. The on the market, rM.
The following table shows risk and return measures for twoportfolios.

Expected Return
The expected return is the profit or loss an investor anticipates on an investment that has known or anticipated rates of return (RoR). It is calculated by multiplying potential outcomes by the chances of them occurring and then totaling these...