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CAPM holds that the excess rate of return for a stock (that is, the rate above the risk-free rate) is a ______ function of the

CAPM holds that the excess rate of return for a stock (that is, the rate above the risk-free rate) is a ______ function of the ______ risk inherent in the security. Multiple choice question.

linear; diversifiable

quadratic; systematic

linear; systematic

quadratic; diversifiable

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