According to CAPM, the expected rate of return of a portfolio with a beta of 1.0 and
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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. β(rM − rf
).
d. The expected return on the market, rM p-856
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Related Book For
ISE Investments
ISBN: 9781266085963
13th International Edition
Authors: Zvi Bodie, Alex Kane, Alan Marcus
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