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is this a true statement? II. According to CAPM, the Reward-to-Risk ratio for any firm i, calulated as (Ri-Rf)/(BETAi), is decreasing as the firm i'
is this a true statement?
II. According to CAPM, the Reward-to-Risk ratio for any firm i, calulated as (Ri-Rf)/(BETAi), is decreasing as the firm i' BETAi increases. ( R i ) is the required return for firm ( i ), and ( R f ) is the risk-free rate.
II. According to CAPM, the Reward-to-Risk ratio for any firm i, calulated as (Ri-Rf)/(BETA), is decreasing as the firm i' BETAI increases. Ri is the required return for firm i, and Rf is the risk-free rate.
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