a

Which of the following statements is true?

Group of answer choices

e) The expected return of a stock does not depend on the risk-free rate

a) The CAPM calculates the observed return on a stock

c) The CAPM uses beta to calculate the expected return on a stock

d) In CAPM, the expected return on a stock does not consider the market risk premium

b) The expected return on a stock is inversely related to its beta