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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ISE Investments

ISBN: 9781266085963

13th International Edition

Authors: Zvi Bodie, Alex Kane, Alan Marcus

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