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(2.5 points) Which of the following is true regarding the Capital Asset Pricing Model (CAPM)? CAPM asserts that the expected return on an asset is

(2.5 points) Which of the following is true regarding the Capital Asset Pricing Model (CAPM)?

CAPM asserts that the expected return on an asset is a function of the total risk associated with that asset.

CAPM asserts that asset prices cannot be determined.

CAPM asserts that the expected return on an asset is a function of market conditions and the assets systematic risk.

CAPM uses a very complicated formula to estimate the price of a stock.

None of the above are true.

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