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According to the Capital Asset Pricing Model (CAPM), a security with a beta of 1.00 will in equilibrium offer an expected rate of return equal
According to the Capital Asset Pricing Model (CAPM), a security with a beta of 1.00 will in equilibrium offer an expected rate of return equal to what?
a) The risk-free rate less the equity risk premium
b) The market portfolio less the risk-free rate
c) | The equity risk premium less the risk-free rate |
d) The expected return on the market portfolio
e) The risk-free rate
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