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In the Capital Asset Pricing Model, the risk-free rate: a links the CAPM to current market conditions. b. is the historic long-term average rate of

In the Capital Asset Pricing Model, the risk-free rate:

a links the CAPM to current market conditions.

b. is the historic long-term average rate of government bonds.

c. can be approximated by using yields on high-rated corporate bonds.

d. is always the current yield on 30-year US government Treasury bonds.

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